In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.
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New Member

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation from 2006 to now.

1- Can I report depreciation?
2- Im trying to start this year  because someone mentioned me. But for what I see I will always have loss and no profit if I report depreciation.
Example; rent income - mortgage int - depreciation = negative(loss). Does this ok?
5 Replies
New Member

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.

Yes, TTPaulaM is right. You are required to depreciate whether to take it or not. You can still amend your 2013 tax return if you do it by April 15, 2017. Then amend your 2014 and 2015 to add depreciation to your rental.
Employee Tax Expert

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.

Yes, you should claim the depreciation on your rental home, even if it produces a loss. 

When you sell the home, the IRS will require you to re-capture the depreciation and pay taxes on it. Depreciation re-capture will occur on the sale, even if you don't take the deduction.

https://www.thebalance.com/depreciation-recapture-3192979

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New Member

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.

Ok nice. One last question. When I reporting this Turbo tax ask for the Amount of Depreciation Taken in Prior Years. I know is 0.0 but turbo tax preset a value of $24,483 that can be change. Do I need to keep that value or I should enter 0.0 because I never report any depreciation ?  Thanks
New Member

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.

If you haven't taken any depreciation enter $0.0 in "Amount of Depreciation Taken in Prior Years". TurboTax will accelerate your remaining years of allowed depreciation. It started at 27.5 years, that leaves about 17.5 years left. Unless you hold the rental for a total of 27.5 years, this will not total eliminate the problem. Also keep in mind, if you were to amend a previous year tax return to include depreciation, it would not be correct to enter $0.0 for 2016.
New Member

In 2006 I bought a house in Puerto Rico(PR) for rent and this house has mortgage. I moved to Maryland in 2011 from PR. I never reported depreciation.

Got it thanks, I will not amend. The good part is "TurboTax will accelerate your remaining years of allowed depreciation" Good No Problem Now
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