There are two ways to claim prior depreciation:
1. File an amended return: This only works if you didn’t deduct depreciation on your rental assets for one year. Go back and amend the return to reflect the missed depreciation. Note: You can only go back one year to claim a possible refund for missed depreciation (this is an IRS rule).
2. 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 claim all the missing depreciation.
If you have not claimed depreciation before you sell the asset, it's too late to take advantage of the expense. You would still need to report ordinary income equal to the full amount of depreciation you should have claimed.
It's better to claim depreciation each year that you own the asset, as you reap the benefit of the expense over the asset's useful life. Reporting the catch-up depreciation this year will reduce current year income for this activity.
Additional Information:
@d_flewelling
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
