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Posted by bono9763@yahoo.com on April 3, 2007, 2:07 am
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> Thanks, Brownie, Bono. No, that wasn't it- I had the right
> data input, and was specifying the class of property
> correctly. I was wondering about if they used some
> alternative formula rather than the tables of what
> percentages per year. One of the instruction pages mentioned
> that as an alternative, but I didn't understand it.
>
> Anyway, it turned out to be none of that, but rather my own
> lack of education, and the badly written IRS instructions
> and guide books. How is someone who has never taken an
> accounting course supposed to know that 'straight line'
> depreciation means you multiply the factor by the <original>
> value each year, not the running depreciated value? Silly
> me. Once I drilled around in TT enough to figure out how to
> dump a table of the calculations, and saw the same
> subtracted amount each year, the light bulb went off. My
> 13-year-old spreadsheet was accurate, just structured on an
> incorrect assumption. Would it have killed IRS to put an
> example table in the instructions for form 4652? I'm far
> from a math idiot- made it through college calc, and do cost
> studies at work all the time. This is simply a concept that
> civilians almost never have to deal with out in the real
> world.
>
> So, my federal taxes since 1993 are inaccurate. Since I
> overpaid, not underpaid, I assume they won't be coming after
> me? I do understand that when I sell the place, even if I am
> not at the end of the depreciation schedule, I need to add
> back the allowable depreciation (iow, what I SHOULD have
> claimed), not what I did claim, when I figure out the
> capital gains thing.
>
> I guess I could file an amended for the most recent three
> years, but given that it would be unlikely to make a lot of
> difference in the total tax obligation, it probably isn't
> worth the hassle. (The rental house in question is closer to
> a shack than a castle.)
>
> aem sends, poorer but wiser....
Look at form 3115, which allows you to change accounting
systems, and you may be able to claim all that lost
depreciation this year instead of amending previous years.
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