Start taking rental depreciation now when not in the past

[syounie]

I have not depreciated my condo rental property since it was put in service in 2019.  I read that Form 3115 is needed to depreciate & adjust cost basis for PRIOR years.  (1) Can I add it as an asset now with in-service date of 2019 or current year 2024, and not do the 3115 for 'prior'years? (2) How exactly do I enter the 2024 remodel costs and a special assessment for the buillding renovation? (3) Can I enter those costs for 2024 if I don't first add the condo as an asset?

[Mike9241]

the major issue you face is that when you sell you must recapture as income the depreciation you never took.

another issue is potential changes in the tax laws that might adversely effect you for not correcting the issue sooner.  

nor should you just start taking depreciation in 2024 for assets placed in service in a prior years. 

the 3115 will allow you catch up on the depreciation for the missed years.  this may result in reducing your 

taxable income for 2024. not enough is known to determine if all the catch up will be currently deductible. 

you should probably seek professional help for doing 3115 

[AmeliesUncle]

I agree with Mike.  In order to start depreciation on the original building, you need Form 3115, and it is highly advisable to have your tax returns prepared by a professional this year.