Yes, it is possible to amend the depreciation for a previous year on a rental property. There are two main methods to correct depreciation errors:
Method #1 File an Amended Return:
- This method works if you didn't deduct depreciation on your rental assets for one year. You can go back and amend the return to reflect the missed depreciation.
Method #2 Adopt a Change in Accounting Method:
- This option allows you to go back as far as you need. You will need to file Form 3115, Application for Change in Accounting Method, to correct the depreciation. This method is used if you didn't claim depreciation for two or more years or if you need to correct the depreciation method used
Here’s how to handle this in TurboTax:
- Open TurboTax Desktop and sign in to your account.
- Navigate to the "Federal" section.
- Go to the magnifying glass at the top right of the screen.
- Type "Form 3115" in the search bar.
- Click the jump link that appears.
- Follow the prompts to complete Form 3115.
TurboTax will guide you through the process to ensure your depreciation is correctly amended
For more detailed instructions, you can refer to the TurboTax support page
