I reviewed a depreciation schedule that a prior CPA had prepared for an S-Corporation. They claimed indian depreciation on restaurant leasehold improvements with a 22 year life. 22 years is the normal indian depreciation life for 39 year property.
The leasehold improvements were placed into service in 2011.
I believe the property should of had a 9 year life, which is the indian depreciation life for 15 year property.
The difference in straight line depreciation from 2011 to 2016 was about $100,000. I am planning on taking this as a 481(a) adjustment in 2017.
Is it appropriate to take all of this on the 2017 tax return? Also, if it is determined that this property qualified for bonus depreciation, how would you handle that?