On a sale of rental property, any unused depreciation must be accounted for. Since he didn't rent the property in 2024, he can't offset the depreciation against rental income for that year. Instead, he should report the depreciation as "allowed or allowable" on Schedule D, which will adjust the basis of the property and affect the capital gains calculation.
Regarding the passive loss carryover, unused depreciation is not treated as a passive loss carryover. Instead, it is recaptured when the property is sold and is taxed at ordinary income
Filing Form 3115 is the correct approach to correct the accounting for the missed depreciation. This form allows your dad to make an adjustment for the missed depreciation and ensure that it is properly accounted for in the year of sale.
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