#1 Thank you. I sold rental in 2016. Back in 2001 it was a rental & I did not list 2 expenses. New Roof $5,500 & New Driveway $11,000. Can I depreciate them now?

[MichaelDC · Accepted solution]

Technically, no. When you sell the property, depreciation "allowed or allowable" must be "added," so to speak, to the profit. The only recourse would require you to amend the previous returns. However, you can only amend 3 years back, so that would not be a big help.

However, there is a great, but fairly complicated, discussion that would give you another alternative. Considering the fact that it is over $16000 of expenses that would be fairly well depreciated by now, this may be worth investigating.

See this link, including the comments for this discussion: https://ttlc.intuit.com/questions/2750332-catching-up-depreciation-and-using-correct-basis