Recapture depreciation?

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  • cheeseheadmama
    Daycare.com Member
    • Aug 2011
    • 76

    Recapture depreciation?

    I have been in business for 3 years, however, I was not aware until this year that I could depreciate the cost of furniture that was purchased prior to starting this daycare business (couch, dining table, etc). I saw it mentioned that it is possible to recapture this lost depreciation, but I am a little stumped as to how to do this. Would I need to file amended returns to do this, or can I "catch up" all in one year? Do I need the original receipts (which I no longer have) for the items in question or can I estimate the original cost? Please help! Thanks in advance!
  • TomCopeland
    Business Author/Trainer
    • Jun 2010
    • 3062

    #2
    Recapture depreciation

    Yes, you can recapture previously unclaimed depreciation for items you were entitle to depreciate in earlier years, but you didn't. Use IRS Form 3115 to claim all previously unclaimed depreciation. Transfer this amount to your Schedule C as an Other Expense. You don't file an amended return because Form 3115 allows you to go back as many years as you need to, whereas you can only amend your tax return back 3 years. You won't need receipts when recapturing depreciation. Take pictures of the items.

    My book 2011 Family Child Care Tax Workbook and Organizer has a chapter on how to fill out this form.
    http://www.tomcopelandblog.com

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