My accountant has put equipment or startup costs or something into my 2006 depreciable assets of say $100,000 and by doing the math it looks like its being depreciated over 7 years. I may as well continue the depreciation, but I was wondering if I get audited for 2010 would I still have to show exactly how the accountant came up with the $100,000 in depreciable assets? Or is the statute of limitations not 3 years for a corp or something is special in this situation?
Keeping books for over 3 years will start to take up a lot of space at home, heh, and most banks dont keep bank statements for over 3 years. So say paperwork is lost and I have no way of getting info to prove depreciable assets I would just get screwed and lose future depreciation and probably get hit with penalties anyway. Would suck. So Help me out please. This is my first time doing 1120s with turbotax and I can understand that equipment and improvements and startup costs were added to depreciable assets, but then the accountant screwed up cash and retained earnings and its a big mess I want to fix this year.
Keeping books for over 3 years will start to take up a lot of space at home, heh, and most banks dont keep bank statements for over 3 years. So say paperwork is lost and I have no way of getting info to prove depreciable assets I would just get screwed and lose future depreciation and probably get hit with penalties anyway. Would suck. So Help me out please. This is my first time doing 1120s with turbotax and I can understand that equipment and improvements and startup costs were added to depreciable assets, but then the accountant screwed up cash and retained earnings and its a big mess I want to fix this year.