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Subject:  Depreciation Date:  11/13/2002  6:15 PM
Author:  aegamemnon Number:  62016 of 127613

What are the implications of skipping a year in the depreciation of a piece of rental real estate? For instance, iassume that I put a rental property into service in 2000 and began depreciating it on my 2000 taxes. The property continues in service as a rental property in 2001 but I do not depreciate it on my 2001 taxes.

The first question is this: When I eventually sell the property years in the future, will the IRS compute the taxes owed on depreciation strictly based upon the year that I began depreciating it even though I skipped a year in claiming depreciation? If so, can I file an amended 1040 for tax year 2001 to claim the depreciation.

Secondly: Realizing that it is to my advantage to depreciate the property every year in the future, do I just jusmp back into the original depreciation schedule begun in 2000? If so, do I count 2002 as yeat two or three of the depreciation?
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