@yp66 wrote:
...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 ?
No, you cannot. The problem is you have to reduce your basis by the amount of depreciation allowed or allowable. Therefore, even if you took no depreciation deductions in prior years, your basis will be reduced by the amount that was allowable as deductions, in total, on your prior returns.
You can, however, correct this situation to your benefit but it will involve filing Form 3115 and making a 481(a) adjustment for the depreciation that you did not take in prior years.
See https://www.irs.gov/instructions/i3115#idm140516453730544
Professional guidance and/or income tax return preparation is highly recommended if Form 3115 needs to filed.
