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Yeah, I keep getting this nagging feeling that I need to see the detail for every return from 2008.... Tom Longview, TX

Since the accounting change for the error from impermissible to permissble method has gone on for more than the second year, amending would also be incorrect. The proper method is to file form 3115, code 7 if the assets have not yet been disposed of, and the 481 adjustment that will be negative should be shown on Sch E. Doing so will put the prior years' adjustment into the category of a passive activity loss (as if) the depreciation and PALs had been calculated correctly all along, and then take the current year's depreciation on the proper line of Sch E. If the assets have already been disposed of, use code 107 on the form 3115 that basically eliminates the allowed or allowable "penalty" of never having taken the deduction but having to use the reduced basis at sale.

Sometimes the best you can do is the best you can do. Question the client, see whatever older returns exist, and go from there. If the client had self-prepared returns, the possibility of depreciation being taken diminishes substantially; they don't understand it so they ignore it.

In the back of my mind I am wondering, "whether no depreciation was ever deducted or whether at some point the depreciation detail just didn't get rolled over and depreciation ceased?"

Thinking that through, that does make sense because any loss that could have been used wasn't used for any tax benefit and would still be c/f, so yes, in a vacuum in the current year of correction.

Tom, obviously one goal is that, at the end of all calculations and current year's depreciation, that the accumulated depreciation and NBV of the assets are correct, and . . . the second is that any PAL carryforward reflects the actual amount as if everything had been reported properly in the first place. Hope someone will chime in if my reasoning is incorrect on this part, but I believe that it may be necessary to make some adjustment to the PAL for any years where the taxpayer may have been allowed the special $25K allowance if the MAGI was under $150K on a joint return, or half those amounts on MFS returns. Were there any years where that may have been the case? Another 2 thoughts - AMT calculations, and I hope you are getting a healthy retainer for this work.

brand new--should work but haven't tried except uploading 2848's/8821's. It's what the IRS wants to move to.

@jklcpa No, I don't think I have to make an adjustment for what did not happen just because it could have. If I did, I would have to recompute every return between 2008 and 2021 to determine the tax effect and bring every one of those adjustments into 2022. I don't think the Rev Procedures and Regulations prescribe that intense of an analysis. I think the intent is to take the adjustment for the item in a vacuum in the year you file the 3115. Anyone disagree? I am not sure, but I hope I am right because I don't have enough summer left to complete this return if I have to re-do every return. Tom Longview, TX

Might be better to amend all of those years, to come up with the passive loss carryovers. Since the older refunds will be lost, I probably wouldn't bother filing those. Just file the last 3 years.

"The Federal Communications Commission (FCC) has announced a record-breaking $299,997,000 fine imposed on an international network of companies for placing five billion robocalls to more than 500 million phone numbers over three months in 2021. The fined companies operated as Sumco Panama, Virtual Telecom, Davis Telecom, Geist Telecom, Fugle Telecom, Tech Direct, Mobi Telecom, and Posting Express. The enterprise violated a multitude of robocall prohibitions by making pre-recorded voice calls to mobile phones without prior express consent, placing telemarketing calls without written consent, dialing numbers included on the National Do Not Call Registry, failing to identify the caller at the start of the message, and failing to provide a call-back number that allowed consumers to opt out of future calls," explained the FCC press release." Finally these calls are so annoying! Probably 90 % of calls to my office landline are robocalls!

In 2022 there were 58 billion robo-calls placed. The 5 billion that were stopped by the FCC only represents about 8% of the total. It's hardly enough to be noticed. These rogue companies will just by pass the FCC and use text messaging and social media. BTW, if you get a call and think it may be a robo-call, answer by saying "Good Morning, (or Afternoon) how can I help you." The calls are programmed to respond to 'Hello' and 'Yes'. If you say something else they will turn off in a few seconds.

I, too, have never had a monitor that died. Therefore did not realize they made that much difference. However, two new laptops this year have already stretched my belt to the limit. Presently, am looking for a "deal" on paper. The cost of doing business has gotten out of hand.