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If you read what I wrote, it was that "the possibility of depreciation being taken diminishes substantially." I also had a client who did it correctly on their own. Exactly ONCE in over 25 years. But the ones who stare at you blankly, ask "what's that?" and have no recollection of it.... it's a fair bet to say it was never calculated or deducted.

No, a correction for cumulative missed depreciation expense will be an additional reduction to Sch E and create an overall passive activity loss from the 2 properties. Reread the original post where Tom estimates the total of missed deductions to be in the 170K range and current income is only about 20K.

Scanner, shredder, all this office equipment looks the same.

I don't think we are stupider, nor should we be. We have to keep an eye on computer calculations to make sure they are correct. That's why we have research books and boards like this one to keep us up to date. If my assistant makes a serious mistake, I can usually tell that her results are wrong even before I go through it. Nothing leaves my office without my scrutiny. That does not mean that I never make a mistake. It means that I am vigilant and cautious.

From the IRS website: https://www.irs.gov/help/irs-document-upload-tool Under more info, it seems like it is only for a few forms. Also, there is a video link for instructions.

It was!

Congratulations, Catherine! And to mom and dad! I was on vacation and missed the picture, but i am sure it was beautiful!

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.