Question

Leasehold Improvements not added on previous returns

Forum|Forum|3 years ago
March 23, 2023
1 reply
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Missed adding Leasehold Improvements on previous tax returns for 10 years, now I sold the property, can I add the additional costs of LH in the year of sale?

M

Mike9241

No. see a tax pro for filing the proper paperwork with the 2022 return. this requires filing form 3115 because no depreciation was taken over the last 10 years when it should have been. the tax laws require that the depreciation you should have taken but did not is subject to recapture due to sale.