Can we choose rather to or not to deduct depreciate? is this an option?

Forum|Forum|6 years ago
December 7, 2019
2 replies
21 views

Can we choose rather to or not to deduct depreciate? is this an option? also, how do we calculate the realized gain / loss when no depreciation were ever deducted in the pass?

ProSeries Professional

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Best answer by abctax55

You *can* choose not to depreciate...but you still get dinged for it upon sale.

Search for "allowed or allowable".

Form 3115 can often be used to fix prior depreciation issues.

abctax55Answer

Level 15

You *can* choose not to depreciate...but you still get dinged for it upon sale.

Search for "allowed or allowable".

Form 3115 can often be used to fix prior depreciation issues.

HumanKind... Be Both

T

TaxGuyBill

Level 15

In my opinion you can't even choose to not claim depreciation, as you would be intentionally filing an incorrect tax return. In connection with the Earned Income Credit, there is a Revenue Ruling (or something similar) that states you are required to claim all valid deductions (which includes depreciation).

abctax55

Level 15

Bill is correct...there can easily be other areas of the return impacted by making the "bad" choice of not taking depreciation. Plus, it is just wrong.

HumanKind... Be Both

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