You have the option. You can do it now, or you can do it in the year sold. If you use Form 3115, in the year of sale you will get full advantage of the depreciation expense you may have missed and you will have the correct cost basis for the sale.
I must make a disclaimer only in respect of the tax law. This has been tax law for many years, however it can always change without warning.
Instructions: What should I do if I didn’t take depreciation on my rental property?
@sk-109
[Edited: 02/19/2024 | 1:13 PM PST]
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