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Old 02-07-2013, 11:20 AM
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Wrong depreciation method used on roof

I discovered that I did not use the right method to depreciate the roof on our residential rental home. I used the MACRS 7 200DB HY and I see I should have used the 27.5 year method. I've been doing this for 5 years. What should I do to correct this?



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Old 02-07-2013, 01:26 PM
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I discovered that I did not use the right method to depreciate the roof on our residential rental home. I used the MACRS 7 200DB HY and I see I should have used the 27.5 year method. I've been doing this for 5 years. What should I do to correct this?”=====> It may or may not be worth amending the last 5 years tax returns. This will probably increase the tax for those years, but only you can decide if that would be worth it. However doing so gives you the opportunity to document that it's for a correction in the depreciation amount as opposed to the depreciation method so there may be value to you beyond the tax savings involved.



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