I didn't know to report rental property depreciation expense until when I'm preparing 2019 return with help of a tax advisor. Then I need to 1040X my 2017 and 2018 return. I prepared with TurboTax Home & Business.
(Edit 6/1: I was using Turbo Tax to file my returns up to 2018. In 2019 I have a third party tax prep company file tax return for me.)
In 2017, only part of the depreciation reported on Sch E because the total expense after adding depreciation is more than the income. The remaining amount was recorded under Vacation Home Loss Limitation in the Sch E worksheet and also shown in item M "Vacation home depreciation" of "Carryforward to 2018 Smart worksheet".
In 2018, it's a little different. The whole depreciation amount is counted in expense, and the total expense is more than the rental income again. This time the exceeding amount is recorded in "Carryforward to 2019 Smart worksheet" as item G "Schedule E suspended loss", and last year's vacation home depreciation continue shown in "Carryforward to 2019 smart worksheet" as item M "Vacation home depreciation".
My tax preparer is waiting for me to file 2017 & 2018 1040X and can update 2019 return with the "Prior depreciation" number. I don't want to delay the 2019 return while waiting for 2017 & 2018's 1040X results.
My question is, can I hold the carryover losses to report in a later year, or until when I sold my rental property?
Or ask in another way, can I keep the unreported previous year's depreciation (either as suspended loss or vacation home depreciation) and freely to report in a later year?
