topic Rental Depreciation in Investors & landlords

Rental Depreciation

rjcmbstxs — Wed, 08 Jan 2025 19:15:59 GMT

I found out i should be taking depreciation out on my rental property. I took a one month depreciation amount last year. I just learned i can take a onetime catch-up depreciation amount and enter it in TT. Can I still take this catch-up amount this year?

Re: Rental Depreciation

Mike9241 — Wed, 08 Jan 2025 19:50:58 GMT

you have not provided enough information. you don't indicate for what asset you are trying to catch-up or why. How many years back? This may require the preparation of form 3115 which must be included in your return. if a catch-up dating back, the use of a pro is advised

Re: Rental Depreciation

rjcmbstxs — Mon, 13 Jan 2025 19:02:31 GMT

I have not taken any depreciation on my single family residential rental property. Last year we hired a CPA. He was supposed to catch up the years from 2005-2023. He amended 2021/22 for 2 years depreciation and took a single year depreciation for 2023. Won't be going to him again. This year I will take the yearly depreciation. I read that I need form 3115 to take the 15 years of depreciation. Unless I sell this property, this could be a moot point. But I'd rather be in compliance.

I need to now catch up the years 2005-2020 (15 years). Can this be done?

Re: Rental Depreciation

AmeliesUncle — Mon, 13 Jan 2025 20:44:01 GMT

Unfortunately, your prior tax preparer messed things up even more. You were not allowed to take depreciation in 2021, 2022 or 2023 (without Form 3115), so now those three years are incorrect and should be amended.

Yes, Form 3115 can be filed with your current year tax return to 'catch up' on the prior depreciation. I recommend going to a tax professional that is experienced with 'catching up' on depreciation on Form 3115 (unlike your prior tax preparer).