Sewell Business Services

This is a very scary thought!

Did your accountant do a great job on your return
or
did they just file it?

There's a difference.

A great preparer asks questions. A filer takes what you hand them.
Rental property? Did they take depreciation — every year, even when it created a passive loss you couldn't use?

Because here's what sophisticated investors already know: the IRS assumes depreciation was taken whether your preparer claimed it or not. When you sell, they recapture it at up to 25% — on the full amount you should have deducted.

The preparer who said "it's a passive loss, it doesn't matter" just set you up for a five-figure surprise at closing.

It matters. It always mattered. And if you've owned a rental for years without depreciation on the return — there's a way to catch up every missed year on one return.

Sewell Business Services