DEPRECIATION ON A RENTAL PROPERTY

[PALACIOS1]

I JUST FOUND OUT THAT I MADE A MISTAKE WITH 2019 AND 2020 RETURN. I ENTERED AN INCORRECT DATE OF SERVICE (depreciation section) INTEAD OF 11/05/2019 I DID PUT 08/03/2019. I MISTEAKE IT BECAUSE OF THE OTHER PROPERTY I HAVE. SO, NOW I KNOW THAT IS INCORRECT WHAT SHOULD I DO? SHOULD I PUT THE CORRECT DATE OF SHOULD I CONTINUE PUTTING THAT ONE THAT IS ALREADY REPORTED ON THE PREVIOUS YEARS? THANK YOU

[Mike9241]

proper would be to file amended returns fr 2019, 2020 and 2021

there is no need for form 3115 in your situation, you miscalculated which is different from using an invalid method or not taking depreciation at all.

if you don't the excess depreciation will be recaptured when you dispose of the property. so rather than capital gain treatment the excesses will be treated as section 1250 recapture.

it's your decision. the excess would be approx .9% of the cost.

[FangxiaL]

You can make the correction on your 2021 tax return. You may also consider amending your 2019 tax return because the change will cause a change in the amount of depreciation deduction. 

@PALACIOS1