What should I do, If I bought the condo on 11/14/2002 and rented out next day 11/15/2002.
On 10/05/2008 I retire this condo to personal use as main home till I retired 01/07/2017 and moved to my home in Florida.
In your 2017 tax return you will find two IRS Form 4562's for that rental property. They both print in landscape format. One is titled "Depreciation and Amortization Report" and is most likely the one you need. The other is titled "Alternative Minimum Tax Depreciation" and you will need that if asked for it.
I rented out condo again from 03/15/2017 till 07/15/2020. Never live there after 01/07/2017
When you converted the property back to a rental in 2017 you reduce the cost basis of the structure (not the land) by the total amount of depreciation taken previously, and depreciation starts over from year 1 on 3/15/2017. The same holds true for any other rental assets that were placed back in service in 2017. If you did not do this on the 2017 return, then you have more than 2 years of incorrect depreciation and can't just amend those prior year tax returns. You will require professional help.
Basically, IRS Form 3115 has to be filed to correct the mistake, if this is your case.
Then I sold it 11/12/20. How to handle this situation?
Depends on if you correctly reduced the cost basis on your rental assets when you placed them back in service in 2017, or not. If you did not, then you need professional help. This is especially true if your state taxes personal income, as this could be a double-whammy for you.
