Depreciation

Forum|Forum|5 years ago
May 10, 2021
4 replies
47 views

I took over doing a 1040C business return. The prior accountant refuses to provide the depreciation history. This is what I know:

7-year property 1,000 7 yr recovery MQ conversion 200 DB $36 for 2017

15-year property $785 15 yr recovery MQ conversion 200DB $10 for 2017

5- year property depreciation deduction $925 for 2017 (based on a printout I think its $18,500 base

Nonresidential 10-2017 $7,313 39 yrs MM S/L $39 for 2017 (That 1 I have no issue)

This business opened around 10/15/2017

2018 shows $7,572 but the accountant did not include the 4562. (based on backup there were no additional assets)

2019 shows 8547 no 4562

I am doing the 2020.

Any help. I cannot make the 2017 numbers work.

ProSeries Basic

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dkh

Level 15

I'd required the client to bring in the worksheets/data provided to prior preparer. The assets purchased should be in that information. From there you hopefully can reconstruct what was done.

F

Foxy-LadyAuthor

Level 4

I have everything she has. She has been fighting with the tax accountant since January to get her workpapers. What information I provided is from tax returns and her list of expenditures that were returned to her.

dkh

Level 15

Is there an issue with money owed to prior accountant that's preventing the release of the depreciation?

T

TaxGuyBill

Level 15

Get the Transcripts and/or copies of the tax returns from the IRS. That way you can actually SEE the 4562 for all years.

Another problem is that I don't think 200%DB exists for 15 year property.

sjrcpa

Level 15

Does prior accountant give a reason for their refusal? Cliint could complain to the licensing board - i.e. CPA Licensing authority if they are a CPA.

Did you ask? Or did client ask? Accountant is under no obligation to give it to you. They would be prohibited from giving it to you without client's permission.

The more I know the more I don’t know.

qbteachmt

Level 15

I did some rough math. I'm good at Excel, but these exist on the web, too, such as:

https://www.calculatorsoup.com/calculators/financial/index-depreciation-calculators.php

The other issue, besides what Bill brought up, is the 5-year a Vehicle? It seems likely there is a % personal and % business, then? Even then, I would have to use 200DB on this, too, to match the numbers you gave for 2017 and 2018.

I used:

5-year MQ 200DB

7-year MQ 200DB

15-year MM SL

39-year MM SL

I got totals for 2017 (1010) and 2018 (7545) okay. 2019, that presumed vehicle doesn't make up the difference, though, unless there is another jump to yet a different depreciation method, with or without a % personal use.

Maybe this is what they don't want you to find out.

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