Carry Forward of deductions for depreciation and expenses.

[pattysamsel63]

Can "unused" deductions for cost of repairs and depreciation for the year they occurred be carried forward to subsequent years, and is there a limit for how many years it can be carried forward? Also, if the rental property - or in my case just a room in my house that I rented out - goes out of service for a couple yeas, and then reenters service - lets say in 2023 - when I do my 2023 taxes can I carry forward "un-used" deductions for depreciation and repairs/expenses from 2019 and 2020 and apply/claim them in 2023 so long as they were reported when doing taxes in 2019 or 2020, or they were reported by amending taxes for the years 2019 and 2020?

[Anonymous_ · Accepted solution]

Suspended passive losses can be carried forward indefinitely and can be used to offset passive income (generally) and are released upon the sale of the property to an unrelated third party.

[pattysamsel63]

I appreciate your answer. Can you please clarify what you mean by they are  "'are released' upon the sale of the property to an unrelated third party?" Do you mean they are just lost to me, or do you mean they are returned to offset the gains?

[Anonymous_ · Accepted solution]

The suspended passive losses are released in the sense that they are available to use to offset any of your other income (of any type).

[pattysamsel63]

Thank you. Would I be correct that  I do not depreciate for years I did not rent?  If I resume renting, and depreciate the room in 2023, since I first began renting it in 2019, even though I have not rented it for the last two years, do I consider 5 years of the rented rooms useful life used up so that year 2023 would be year 23.5? Or, since there would have been a 2-year interruption in renting would that be 3 years of the rooms useful life used, so it would be year 25.5? Or, does the clock reset if there was an interruption in renting so there is again 27.5 years? The house was not available or advertised for rental during the two "off" years.  Also, I was considering actually renting a different bedroom this time which would involve a different square footage when calculating depreciation. In that case, I believe I would start over at 27.5 years useful life, as that bedroom would never have been depreciated. Is that right? I am concerned about how this might cause future difficulties when doing taxes in the future, or confuse the IRS who might not realize it is an entirely different bedroom. 

[Anonymous_]

I believe I might have answered this question in one of your other posts.

[pattysamsel63]

I will look to the other post. I "lost" and could not re-find a couple original posted questions, so I am sorry but I wound up posting a couple questions similar to earlier questions. Thank you for your help. 

[Critter-3]

@pattysamsel63 

In any thread simply click on your userID to get a listing of all your posts :  https://ttlc.intuit.com/community/user/viewprofilepage/user-id/5107263

[pattysamsel63]

Helpful. Thanks!