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Level 2
posted Mar 21, 2022 4:49:27 PM

Missed depreciation

I have a 4 bedroom house that I rented a few rooms of. This is also my primary residency. I forgot to do depreciation in my 2019 tax return. Regardless of whether I took the depreciation or not, it did not end up affecting my taxes.

 

2018: Lived in this fully. No rental use at all.

2019: I rented 50% of my property (2/4 rooms) at mid-year. I omitted depreciation by mistake.

2020: I rented 75% of my property. I correctly reported depreciation for the 75% used as a rental.

2021: I realized my mistake when I sold the property and now I have to recapture depreciation. Haven't filed it yet.

 

What is the best way for me to correct this issue in 2019 when I omitted depreciation? Does this require form 3115 or can I simply amend the 2019 return?

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1 Replies
Level 15
Mar 21, 2022 7:06:46 PM

form 3115 is required when you use an improper depreciation method. not taking depreciation is improper. Your best course of action unless you want to deal with form 3115 for 2021, is to seek out a professional.