Yes, if you didn't take depreciation on this rental property when you should have, you'll need to file Form 3115 and 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.
See this post for complete instructions: What should I do if I didn’t take depreciation on my rental property?
Note that under IRS rules, residential rental property assets are depreciated over 27.5 years for an equal amount each year. See IRS Publication 946 How To Depreciate Property Table A-6.
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