I bought a home in 2006, lived in it till 2007 and then moved away and started renting it. I sold it in 2019. It was consistently rented for the period between 2007 and 2019.
I have been using TurboTax since 2006 and have been keeping track of all my income/expenses. Since the rent income never covered all my expenses, a have a huge chunk of passive activity losses that have carried through to now.
However, no depreciation expense was taken during any of the tax years 2007-2018. Not sure why, but my question now is what is the best way to handle this. When I enter the sale information, in the screen titled "Confirm your Prior Depreciation", can I simply correct the amount from what TurboTax puts as default based on having taken depreciation with a value of 0 ? The reason I am asking is because the difference in my refund is very large (to the tune of $35,000) and since I did not claim the depreciation, I don't want to lose the tax benefit.
