BobKamman
Level 15

Must have been back when IRS had extra people sitting around with little to do.  What is being proposed here is a retroactive change, I suppose under the "automatic" procedures.  But IRS has said  "In the Government’s view, it is in not in the interest of sound tax administration to permit taxpayers from requesting, or otherwise making, a retroactive change in a method of accounting, whether the change is from a permissible or impermissible method."  

If the taxpayer had kept this rental, the 3115 would be needed to start depreciation in 2020.  But since it was sold, there is no going back.  The gain includes recapture of depreciation that was allowable even though not claimed.  The carryover losses are those that exist without depreciation.  The former tax preparer is liable for the additional taxes.  

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