Hi Gisele, if the house was not a rental property but rather one's primary home, can capital improvements from prior years (unreported on those years' tax returns) be included in the current year's returns?
We will close escrow on the sale of our 21 acre property in a few weeks, but we haven't included roughly $650k in capital improvements from prior years. Because the depreciation was never taken, and will be recaptured now that the property is selling, is Form 3115 still relevant for us, or can we just list the capital improvements and not bother with depreciation?
Thank you!
