Rental property depreciation out-of-service date

[mbradshaw]

I have a question regarding depreciation and the sale of a house which was used for a rental.  I inherited and started renting a property in 2015.  In 20017, the tenant moved out and I began renovating the place which I sold in 2020.  A CPA did my 2015 taxes in which he calculated the depreciation but that was the only year it was calculated since I did them myself afterwards and didn’t understand what depreciation was.  It seems that I’ll need to send in form 3115 to correct the missing depreciations for previous years but I’m not sure what year the depreciation should stop.  When the tenant moved out in 2017 or when I sold the property in 2020?

[tagteam · Accepted solution]

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@mbradshaw wrote:

When the tenant moved out in 2017 or when I sold the property in 2020?

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At such point in time when the property was taken out of service for rental use.

You might want to seek professional guidance with respect to the preparing and filing of Form 3115.