@vosu wrote:
Hi, I thought I did set it up when I indicated that I owned 50% of the property in TurboTax.
Let's take a step back. Are you saying you DID enter the property for depreciation, but it now seems like you were actually depreciating 100% of the property? If so, then ...
If so, Form 3115 does NOT apply. Using an incorrect Basis for depreciation is a "mathematical or posting error", not "method". That means Form 3115 does not apply.
Option #1: Amend your previous returns. This is the most correct method. Then correct the Basis on the 2020 return to 50%, and report the sale. When entering the "prior depreciation", use the amounts you used after amending.
Option #2: Don't amend and change the asset to 50% of the Basis. Enter the ACTUAL "prior depreciation" that you claimed (which was too high because you were depreciating 100% of it rather than 50%). Then go ahead and report the sale.
Again, Option #1 is the most correct method to use, but both options could have similar overall results if your circumstances are very similar across all years.
