@marissar wrote:
I'm not sure if I can claim the depreciation in the current year or not.
One year of depreciation was taken on one rental and three years was taken on a rental sold in 2021
Yes, you can claim depreciation in the current year. When it asks for "prior depreciation", be sure to enter the amount that SHOULD have been taken.
As for the prior years, because depreciation was taken in the first year it was rented, Form 3115 does not apply. She can amend the prior years to claim the depreciation for those prior years. The older years may be past the Statute of Limitations for a refund; however, if she had passive losses that were not allowed then amending would increase her carryover passive losses.
