You have three choices.
- Pay tax on the recaptured depreciation even though you never took it.
- Amend as far back as you can to take the depreciation deduction for those years and forgo the balance.
- File Form 3115. It is complicated and TurboTax does not offer this form.
Select your tax year for amending instructions:
Unfortunately the depreciation recapture is "allowed or allowable" meaning even if you never depreciated it, you would still have to recapture the depreciation. Depreciation taken would be on line 18 of Schedule E.
One solution is to elect an accounting method change and file a Form 3115 in the current year and take the prior depreciation as a section 481(a) adjustment. [land value is separated, land is not depreciated]
Below are the IRS links related to the change in accounting method. TurboTax does not have that form.
May be these will help
Form 3115, Application for Change in Accounting Method
Form 3115
