topic Last year, my wife and I turned our residence into a rental property. I didn't then know about depreciation and so I didn't claim that year.. Is it possible to this year? in Investors & landlords

Last year, my wife and I turned our residence into a rental property. I didn't then know about depreciation and so I didn't claim that year.. Is it possible to this year?

orthodoxlinguist — Wed, 29 Jan 2020 08:05:04 GMT

Re: Last year, my wife and I turned our residence into a rental property. I didn't then know about depreciation and so I didn't claim that year.. Is it possible to this year?

surgerygalore — Wed, 29 Jan 2020 14:50:52 GMT

hello

it is possible this year but why not amend your previous year return?

TTax allows to do it very easily

Re: Last year, my wife and I turned our residence into a rental property. I didn't then know abou...

JohnB5677 — Wed, 29 Jan 2020 21:07:08 GMT

Yes, you can claim it this year, but I do agree with surgerygalore that you should amend last years return.

There is a thing called Depreciation Recapture. Basically, If you sell the property in the future for a profit the IRS will add any depreciation back into your income weather you took it or not.

So, if you don't amend last years return, and you sell the property for a profit. You will pay tax on money that you didn't get a deduction for.