see this explanation of when 3115 is required and when its not but amended returns need to be filed
https://msatp.org/fixing-the-error-how-do-we-solve-depreciation-mistakes/
under the tax laws if you fail to take the minimum required depreciation, unless you correct the error, upon sale you have to recapture the omitted depreciation
https://msatp.org/fixing-the-error-how-do-we-solve-depreciation-mistakes/
from the thread
Amending returns will only correct depreciation errors that have occurred in the last three (?) years. Errors that have occurred before that cannot be “caught up” on current or amended returns and will only be “caught up” when the asset is sold using a Form 3115 and Code 107 as discussed below.
THIS IS INCONSISTENT WITH THE FOLLOWIN IN THE SAME THREAD
Explanation of the 2-year rule:
The use of an incorrect method of depreciation, which would include taking no depreciation, is considered the use of an incorrect accounting method. Once an incorrect accounting method has been used for two years, a Form 3115 is required to change accounting methods back to a correct method, or in this case, since not taking depreciation is incorrect, to begin taking depreciation a Change in Method form must be filed. To change to the correct method, meaning to take the overlooked or correct depreciation requires the filing of the change in accounting method
as to C/F of PALS, if you have been consistently using Turbotax, the C/Fs including any 199A C/F should be automatic. you can review the detail on form 8582 for PAL and form 8995 for 199A(QBID)
if you don't group rental activities, then then any PAL is released upon sale. Groping requires disposition of all items in the group before PAL would be released. Note, the if there are loses for 199A, they don't go away until used even if you dispose of the property.
