Submitted By: someone
Answered: July 22, 2018 10:46 pm

I own rental property but forgot to deduct depreciation last year. Can I claim the overlooked amount on my return this year?

To catch up on missed depreciation, you must make a change in accounting method. However, this is an automatic change; you don’t need IRS approval but do have to follow procedures. Details on how to do this can be found in Rev. Proc. 96-31 (https://www.irs.gov/pub/irs-tege/n96-30.pdf).

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Tax Glossary

Assignment

The legal transfer of property, rights, or interest to another person called an assignee. You cannot avoid tax on income by assigning the income to another person.

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