Wrong bonus depreciation - should I amend prior year before filing current year?

[jd812]

We purchased a vehicle (van, GVWR over 6,000 lb) for our business in 2019 that qualified for 1st year 100% special bonus depreciation. We mis-classified the vehicle as a Lightweight Van (under 6,000 lb) in Turbotax and it only depreciated $18,100 - unfortunately, we only realized this while working on our 2020 return.

We completed the work to amend the 2019 return (but haven't filed the amendment yet) and filed an extension for 2020 so we could have more time to double check the numbers. My question for the community - do we need to file and wait for the 2019 amendment to be accepted/processed before filing the 2020 return? 

[Mike9241]

do we need to file and wait for the 2019 amendment to be accepted/processed before filing the 2020 return?

no you don't. but in 2020 TurboTax you need to update the asset info for the vehicle so you don't take any depreciation in 2020.

[Snowy_Desert]

@Mike9241 - I'm in the same boat but not the same scenario. I might need to amend my 2023 as I made a mistake not updating the cost basis for my ESPP. I have a carry forward capital loss. If I amend my 2023 return, my 2024 will also need to be updated to reflect the balance of the carry forward loss (by about $2k). Basically, the current carry forward balance showing for my 2024 return (I have not filed yet), is $32k, and if 2023 was filed correctly, it should show $34K of total loss. So now, I am unsure if I should amend and wait a few weeks until the 2023 amended return is accepted before filing my 2024.

[DianeW777]

No. You do not need to wait to file your 2024 tax return. You have the correct capital loss carryover to use when filing the 2024 tax return.  The IRS will pull everything together at some point which will provide the detail they would need for your 2024.  It takes then quite some time to combine the accounts and reconcile, even with all of our technology.

@Snowy_Desert