Investors & landlords

Yes, miscellaneous expense can be used for the expense shared with the condo association since it appears all are repairs and not replacements.

Yes, you can include the new roof assessment paid in 2021 for the tax years you missed the depreciation.  However the IRS does have a specific plan of action for that.  Please see the instructions below which will allow you to claim it in 2024 without amending the prior year returns.

First add the roof replacement assessment as a capital improvement in your assets for your rental with the correct date placed in service (2021), i This will provide the correct amount of depreciation for the current year and all future years. The chart for 27.5 year property is added below and can be found in IRS Publication 946.

Next, for the prior depreciation you have not used.  At the point of sale, you will recapture any depreciation that was allowed or allowable. 

• 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.
• This form is available in both TurboTax Online and TurboTax Desktop. TurboTax doesn't help you with this form. And your return must be mailed because this form is not supported through e-file.