Sale of property (asset setup on wrong company)

[ILLMAS]

 One of my associate has a client that owns multiple corporations (A & B ) that services one another, they bought a commercial building under corporation B, however the in-house accountant said the building was bought under corporation A and it has been depreciated for the last 5-7 years.  In 2015, the building was sold, gain was reported on corporation A tax return etc..., taxes were paid, in 2017 corporation B gets an IRS bill for the proceeds of the sale that was reported on B, my associate friend asked for my advice and I could only think of going back and amending each year to remove the depreciation from A, amend B to include the deprecation up to the date of the sale.  Can someone make a better suggestion on how to handle this?

Thanks

MAS

[Lee B]

This may be a bit of a stretch, but I would seriously consider filing a 3115 for each corporation.

For the corporation with the increased expense, they could deduct it in the current year.

For the corporation with the increased income you have the option of spreading the increase over 4 years.

You would have evaluate this approach versus amending all those years.