If you don’t own a rental property, this may not interest you. If you do, read on.

One of the rules of rental property is that you must take depreciation each year. To be clear, whether or not you “take” the depreciation on your Schedule E each year you must recapture all the required depreciation regardless. Until now, many who did not understand this wound up going back to their returns and amending them for the last three years, but losing the benefit of all the deprecation not taken.

I recently came across an article titled Allowed or Allowable which discusses new revelations that may help you recoup the money you’d have otherwise lost. The article suggests a change in accounting method, and IRS bulletin 2004-3 confirms the content of the article I cited.

As I stated in my introduction, this impacts few people, but those impacted have the chance to save quite a bit of money by reading the above.

Joe

• Some Obamanomics
• Money Merge Account Analysis Pt 32
• A Roth Roundup
• Fun with Schedule A
• Money Merge Account Analysis Pt 27

• First Time Home Buyers Tax Credit - Who It's For And What Is Needed To Claim It
• Save Time, Money and Space in Over 80 Ways
• Indiana/Illinois Real Estate Broker Reveals the Insiders’ Secrets To Making Money in This Market
• President-Elect Obama Talks About Tax Cuts And Stimulus Package
• Should You Do Your Taxes Yourself And Fire Your Accountant?

written by JOE \\ tags: depreciation, irs, rental property