If you do not claim depreciation you are entitled to deduct, you must still reduce the basis of the property by the full amount of depreciation allowable.
You can amend only three years back.
Even if it was just a mistake, you would treat it as an accounting method change and file a Form 3115 in the current year and take the depreciation as a section 481(a) adjustment.
If your MAGI is over $100,000, your maximum loss available decreases by $.50 for every dollar over $100,00 The maximum loss is completely phased out at $150,000.
Note: When you sell your income property, you can write-off any unused rental losses that have accumulated while you have owned the property.
Suspended and current year losses from a passive activity become deductible in full in the year that you dispose of all interest in the activity...provided it's not sold to a related party.
