Property depreciation change

[phyzx]

Hello,
I have a rental from 2011 to now 2020. I was originally not depreciating it in 2011 to 2015. Through some mishap I started depreciating it in 2016 to 2018. In doing my 2019 taxes I would like to go back to not depreciating it. I have put a lot of work in the property and chose to get the tax write off that year. The maintenance upgrades are trees trimmed, hot water in 2017, two new toilets in 2019, New stove in 2019, new microwave in 2019, new roof in 2017, and new washer and dryer in 2018.

Tax reporting History:
2011 - 2015 no depreciation, no form 4562 in tax pdfs
2016 - 2018 Ye depreciation, ye form 4562 in tax pdfs

What do I do to correct the reporting situations in 2016 - 2018?
Or is it incorrect to switch inadvertently in this reporting scenario?

What I have now is I am depreciating the house after the large updates but would rather take the deductions for the year of impact. The rent I charge is below the assessed fair value amount so my taxes are less. Any post would be appreciated.

Thank you.

Thank you.

[Carl]

Taking depreciation on rental property is not an option. You are required to depreciate rental property by law. So if you did not depreciate in the past when it was classified as rental property, you have a major legal tax problem. I would highly suggest you seek professional help, because the cost of fixing this *will* *not* *be* *cheap*, but it will be more costly as more time passes without you fixing it.

[phyzx]

I am not talking about depreciating assets through expenditures.

@CarlSo why does Turbo Tax offer the option?

And I do agree this is a big SNAFU on my part. I realize this does need correction. I am seeking a CPA after I file an extension for this year to get past the closing date of April 14.

And would calling out for a South Denver, Colorado based CPA in this fashion here be permissible through TurboTax? Preferably in the Littleton area.

[Carl]

I am not talking about depreciating assets through expenditures.

Through expenditures? Depreciation is a type of expendicture, and one you're required to take.

@CarlSo why does Turbo Tax offer the option?

Turbotax does not offer an "option" to take depreciation or not. It figures the depreciation "for you" and gives you the opportunity to correct it, if for some reason it's wrong. From my experience with the program, it's never wrong on depreciation with one exception. That exception being the first year depreciation if you are renting out a part of your primary residence. The program still to this days figures it wrong in that specific and explicit scenario.

I am seeking a CPA after I file an extension for this year to get past the closing date of April 14.

The filing deadline has been extended to July 15 2020 for the 2019 tax filing season.

And would calling out for a South Denver, Colorado based CPA in this fashion here be permissible through TurboTax?

You'll need to seek professional help on your own in your local area. TurboTax does not do anything in the way of endorsing or recommending third party tax professionals.

You do have a mess, and most likely a CPA will need to file IRS Form 3115 with your 2019 tax return to fix this SNAFU. Just make sure you have your checkbook handy. Depending on the amount, I fully expect that what you're going to pay to the IRS is going to make what you pay a tax professional seem like a pittance in comparison. Hopefully I'm wrong for the sake of your wallet.

Finally, do not attempt the 3115 on your own. I can assure you it's not a simple as it looks. I think that's why TurboTax does not include or support that form.

[phyzx]

So what I have learned hear is that I made an accounting change in 2016 from non depreciation to depreciation. I realize that my question has two requests. The first change in accounting from non-depreciation to depreciation and then now thinking of going back to non-depreciation. I was thinking this would clean things up. I looks like I should stay as depreciating from here on out. What started this mess was I was not going to depreciate the personal use appliances, i.e. laundry, kitchen and bathrooms. I just replace them as they are relatively inexpensive. In this decision I also included not depreciating the house. I mixed apples with oranges.

Thank you for the reply.

[phyzx]

I contacted Liberty Tax and will get to speak to an agent. They didn't seem to concerned that the situation couldn't be resolved. Things go better with answers!