We discovered that TurboTax Premier failed to include depreciation of our rental home (rented since 2015) in 2021 and 2022 tax years. We sold the rental house in 2023 and discovered the mistakes while preparing our tax forms this year. We plan to submit Form 3115 to recapture the missed depreciation, but as I read the Instructions for Form 3115, it appears the IRS may not accept a change in accounting methods if submitted the same year we sold our house. Here is what I read: "Ordinarily, the IRS will not consent to a request for an accounting method change when an applicant ceases to engage in the trade or business or terminates its existence."
Please help us determine the best path forward. TIA
