Depreciation recapture comes from the Taxpayer Relief Act of 1997, which imposed the higher tax rate for all IRC Section 1250 gains, which for means all rental property investments. When you sell the property, you must “recapture” any depreciation you’ve taken “allowed” (or could have taken “allowable”). ( The IRS will TAKE IT even if you had not claimed the depreciation in earlier years)
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.
Seek the help and advice of a CPA to maximize your benefits , the Form 3115 is a complicated process.
