USA disposal of asset

[Goldie]

Hello,

I have taken over responsibility for my Father’s income tax return. He has a few rental properties. I noticed that he has been depreciating a heat pump that was put in place in June 2006 and then in 2012 he began depreciating another heat pump for the same location after the original heat pump was replaced. He forgot to tell the CPA that the heat pump put in service in 2006 had been disposed of in 2012. For tax purposes what needs to happen? Does this mean that I will have to refile taxes for 2012?

 

[kirby]

The odds are no. The heat pump is a machine. Machines wear out and need to be replaced. It is likely that the old heat pump was fully depreciated at the point it was replaced. If so, which is highly likely, there is no error. If you are unsure, just ask the CPA.

 

[Goldie]

The heat pump wasn't fully depreciated. There was still another $1200 to depreciate. Won't the taxes need to be refiled for 2012?

 

[kirby]

That could have been the salvage value. The person who knows is the CPA. Again, just ask the CPA.