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Depreciation on a condo

katie
Level 2

A new client has asked me to prepare their Form 1040.

  • Client files married filed jointly; ages 69 and 73.
  • Jointly own a home and two condos.
  • The two condos are rental properties
  • They sold 1 of the condos in 2020

The last time they filed their taxes was in 2017. Their tax preparer told them they didn't have to file taxes since they only receive social security SSA-1099.

In, 2020 they sold one of the condo units, but I do not have their accumulated depreciation. How do I get accumulated depreciation?

Do I need to file 2018 and 2019 also?

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4 Replies 4
BobKamman
Level 13

They didn't receive any rent in 2018 and 2019?

katie
Level 2

Yes, they did receive rental income for both units in both years.

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BobKamman
Level 13

What do you think?

1)  They tell you their only income is Social Security. 

2)  Then they tell you they have rental income. 

Maybe a few neurons short of a synapse?  Be careful around people with early dementia, their kids may sue you if you overlook their condition. 

Do they still have copies of their 2017 return?  Or maybe they forgot where they put it.  Previous preparer still around?  Or maybe an injunction from the government, banning him from practice.  

Good luck.

katie
Level 2

Now that I have confirmed rental income was received, they are aware 2018 and 2019 will need to be filed.  They will try to dig up their 2017 return.

Thanks BobKamman.