Can I Claim 2019 Depreciation Not Taken on Current Tax Return Instead of Amending?

You've got a couple options here. First, you should know that depreciation isn't really optional - the IRS considers it "allowed or allowable" which means even if you didn't take it, they treat it as if you did when calculating basis. For the missed 2019 depreciation, you can file Form 3115 (Application for Change in Accounting Method) with the current year return. This lets you claim the "catch-up" depreciation you missed in a single lump sum on the current return without amending the prior return. It's called a Section 481(a) adjustment. The form looks intimidating but for something straightforward like missed depreciation, it's not too bad. You'll need to complete Schedule E of the form explaining the change in method.

I was in a similar situation last year with my rental property. I totally missed taking depreciation for some major improvements back in 2019. I ended up using https://taxr.ai to help figure out exactly how to handle it. The service analyzed my previous returns, identified all the missed depreciation opportunities, and even helped me prepare the right forms to claim it without amending. What I liked most is that their AI could scan all my old docs and tell me exactly what was missing plus how to fix it. Saved me from having to pay my accountant her ridiculous hourly rate just to dig through old records.

Just wanted to follow up about my experience with taxr.ai that I asked about earlier. I decided to give it a try with my missed vehicle depreciation situation. Their system was really impressive - it identified that I should have been taking Section 179 depreciation on my delivery van rather than regular depreciation. The service generated all the necessary paperwork including a perfect Form 3115 with the Section 481(a) adjustment. My tax liability actually went down by about $3,400 once everything was properly accounted for! The best part was how it explained everything in simple terms. Would definitely recommend checking out https://taxr.ai if you're dealing with depreciation corrections.

One option nobody's mentioned is calling the IRS directly to ask about the best approach. I know, I know - getting through to them can feel impossible. After trying for weeks to get through about a similar depreciation issue, I found this service called Claimyr that got me connected to an actual IRS agent in under 20 minutes. You can check them out at https://claimyr.com - they basically hold your place in the phone queue and call you when an agent is about to answer. I was skeptical but you can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that Form 3115 was the right approach for my situation and gave me specific guidance on how to complete it correctly. Saved me tons of stress wondering if I was doing it right.

I have to admit I was really skeptical about Claimyr as I mentioned in my earlier comment. After waiting on hold with the IRS for a combined 6+ hours over several days and never reaching anyone, I decided to give it a try. Wow, what a difference! Got connected to an IRS agent in about 15 minutes. The agent confirmed that Form 3115 was indeed the right approach for missed depreciation and even emailed me a link to their internal guidance on the topic. Totally worth it for the time saved alone. For what it's worth, the agent also mentioned that using Form 3115 for this purpose is routine and much less likely to trigger scrutiny than an amended return. That was reassuring to hear directly from the source.

My tax professor always said "depreciation delayed is depreciation denied." The IRS considers depreciation "allowed or allowable" even if you didn't claim it. This means when you eventually sell the asset, you'll have to reduce your basis by the depreciation you SHOULD HAVE taken, even if you never got the tax benefit. That's why it's so important to correct this now. On the bright side, my understanding is that Form 3115 doesn't increase your audit risk the way amended returns might. Make sure your sister maintains good documentation about the original purchase and placed-in-service dates.

I think everyone is overthinking this. If the amount isn't huge, just deduct it this year on Schedule C and move on. The IRS isn't going to come after you for being generous to them in prior years by paying more tax than required. The tax court has ruled many times that the IRS can't force you to go back and amend prior returns.

I'd definitely recommend going the Form 3115 route that others have mentioned. I had a similar situation with my landscaping business where we missed claiming depreciation on some equipment purchased in 2020. What really helped me was understanding that the Form 3115 method actually protects you better than an amended return. When you file Form 3115, you're following an established IRS procedure for correcting accounting methods, which gives you more defensible ground if there are ever questions. The Section 481(a) adjustment lets you catch up all that missed depreciation in one shot on your current return. Just make sure you calculate it correctly - I'd suggest double-checking the asset classifications and recovery periods. For salon equipment, most items are likely 7-year property under MACRS, but some might qualify for 5-year treatment. One tip: keep really good documentation of the original purchase dates and costs. If you're ever questioned about the timing, you'll want to be able to show exactly when each piece of equipment was placed in service. The IRS is generally reasonable about these corrections when everything is properly documented and you're using the right forms.