The original answer assumes you did use half the purchase price as indicated for the first part of the duplex when it began to be rented 15 years ago. For the depreciation that was not used for the five year period after your converted the second duplex, you can take all of that as an expense in 2024. This was unclear in your original question. Here is the answer and information to capture it now.
For the five year period where you inadvertently missed the depreciation for the second duplex you began to rent, set the asset up as though you had taken it. Use the original date you began to rent it as the date placed in service. You do not use a new book value. Write down the number for 'prior depreciation' when that screen comes up.
Next, for the prior depreciation you have not used.
- You can use the following form to correct the depreciation for your rental property. Take any amount not previously expensed on prior returns, as an expense on the current year tax return as 'Other Expenses'.
Form 3115 Instruction: By including this with the current year tax return, you can complete everything on the 2024 tax return.
- Adopt a change in accounting method: This option allows you to go back as far as you need. Make the adjustment on your current year tax return to expense the missing depreciation.
- Why am I adopting a change in accounting method? Not claiming depreciation in two or more years indicates that you've chosen an accounting method without depreciation. In this case, you must now elect to change your accounting method to include depreciation.
- You must use the TurboTax Desktop to complete this form. TurboTax doesn't help you with this form. And your return must be mailed because this form is not supported through e-file.
This must be completed and filed with the return on time.
You can change to TurboTax Desktop if you choose.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
