USA Asset not listed on previous years return 4562

[MFox]

Hi all,

Hoping to get some advice here. I have a client whose 2013 tax return was prepared by another firm. In reviewing the client's books, I found there was a capital lease in 2013 that the previous preparer missed... they simply recorded the lease payments as expense.

What are my options at this point? Do I have to amend the 2013 return in order to capture the depreciation on this lease? I would like the client to get the benefit of taking depreciation on this, but am trying to keep this as simple as possible for them. If this lease had began in 2014 I would have taken the full value under Section 179. Can I just calculate MACRS depreciation and take 2014s calculated depreciation even though the item isn't listed in 2013s return?

Thoughts? Is my only real solution to amend the 2013 return before preparing 2014?

Thanks in advance.

 

[monieleazenby]

Any changes to prior tax returns you will have to amend make sure the client is in compliance with IRS if there is any tax liability incurred advise them to begin applying estimated taxes or provide them with a tax resolution