$25.00 
Learn more
Submitted By: someone
Answered: July 22, 2018 10:46 pm
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).
advertisement
Featured Books
Tax Glossary
Installment sale
A sale of property that allows for tax deferment if at least one payment is received after the end of the tax year in which the sale occurs. The installment method does not apply to year-end sales of publicly traded securities. Dealers may not use the installment method. Investors with very large installment balances could face a special tax.
