How long do I have to itemize something that I forgot about years before?
Example: I had to buy a new water heater and AC unit. This happened about 5 years ago. I have a home office. If I never itemized it, is it possible to itemize for the 2010 year.
Thanks
3 years from the date you filed your return, or 2 years from the date you paid the tax, which ever is later. I think the above rules hold even if you filed late. And if you didn't file at all, you file the original form, not an amended return, but I think there is probably still a statute of limitations because otherwise people could file returns for 10 years ago to claim money back.
Did you add AC unit to your unit or replace the old one? Same question with water heater. When did your home office start?
On refunds there's a three year limitation from the time the return should have been filed.
I replaced both. Office started 8 years ago.
If you filed your 2007 return on or before 4/15/2008, then you have until tomorrow to file an amended return. As you didn't replace either item in 2007, I don't know what there is to amend.
Please note that the advice you are getting has to do with whether and how to file an amended return for the year you got the item; you cannot itemize it on your 2010 tax return.
All of the answers so far assume that the water heater and A/C were not capital investments that should have been depreciated, and a portion of that depreciation taken as part of your office-in-home form.
If they were capital in nature, we should be discussing a 3115.
Kudos to Don - I agree completely. I think this is NOT an itemization thing, but a home office thing. If he failed to include the AC unit and water heater when he bought them they should be added to his current return and he should "catch up" the depreciation using the "change of accounting" rules and Form 3115.
BUT when he factors in the percentage of use associated with the home office, as determined by the square footage ratio required on Form 8829, and considering the useful life of the property, I seriously doubt that these deductions will amount to much of anything at all. And even if they were actual repairs, the percent of use based on square footage comes into play, again severely limiting the business use deduction. Either way, I doubt the business deduction portion is significant enough to lose sleep over.
Gene E. Utterback, EA, RFC, ABA
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