No, you should not forgo depreciation. Later, when you decide to sell the depreciation that was or should have been taken will be recaptured. In other words, the IRS will regard the sale with depreciation taken whether or not you actually did so.
Losses on rental properties are common and are carried forward to future years that you have a profit, and any remaining balances come into play when you sell.
You don't have to figure out the depreciation because TurboTax will do that for you. After you have entered all the property details in the Rentals/Royalty section and indicated what type of rental your property, you'll come to the Rental Summary page.
In this section, you'll enter your income, expenses and add assets for depreciation. You will select Rental Real Estate Property as type, then answer questions about its cost, land cost, date purchased and continue to enter the date you first started using the property in business.
TurboTax will then calculate all the depreciation that should have been taken in prior years. You either accept or correct the amount based on your records then continue. Next screen you will see the calculation and if you mark the box, a detailed description of the asset and your recovery period.
Look for Form 4562 Depreciation and Amortization Report when you print your documents and keep that for future reference. Print ALL worksheets and not just the Federal/State tax returns to retain all worksheets in a pdf file.
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