I made the grave mistake of not depreciating a rental property. I'm now learning how to do it now by catching up. I have the instructions on how to change accounting method and I've done my research on how it's calculated. I am just about to enter it on TurboTax so I'm sure I'll have more questions. So, When I enter the depreciation adjustment amount. It'll be the 11 years depreciation amount (I didn't depreciate) + partial year put in service amount right? Well, my question is do I really have to claim all that depreciation this year? This would bring my income negative I would think. My other concern is that I wouldn't qualify for purchasing health insurance on the marketplace right? I'd have to pay the tax credits back? I guess I'm not sure how it all works together.
side note...I do wish TT would have gave me a tip (a flag that pops up) about this seeing that I have a rental and wasn't depreciating. That's the kind of thing I would have expected TT to guide me on seeing I'm not a professional tax preparer and is why I pay for their software.
