TT did depreciation on our camper that I rent out the first year but failed to do it in 2023 & 2024!

[siebertclan]

Depreciation completely skipped by TT for 2 years! Anyone have this problem?

Guys...  I am so mentally exhausted from staying up until 3:30am after realizing that my desktop TT Premier did not do any depreciation for the last 2 years on our camper that we rent out.  It did it properly the first year in 2022, but it failed to do it the next 2 years.  My tax file from 2022 was on this computer, so I'm not sure if TT glitched and caused this, or what on earth happened.  In all my research last night I saw several posts regarding all the glitches in TT where it does not do depreciation correctly or at all here and there due to software update problems etc.  I about CRIED last night seeing this!  You just take for granted that TT will do these sort of things automatically because it "reads" all previous year tax files.  Ha.....   Now I see that I need to file Form 3315 for the last 2 years.  I am just mentally exhausted now.  I may need to ask for some help figuring this whole mess out from TT, and I'll have to pay for it which is ridiculous since their software glitches is what caused me this anguish.  

[MelindaS1]

So you don't have to use Form 3115 in this case, which can be challenging. Form 3115 can be used if you missed depreciation in prior tax years and want to capture it all in one year instead of amending those returns, or the amendment time frame has passed. 

Since you can still amend tax years 2023 and 2024, I'm attaching the instructions to amend prior years below, if you choose to take that route instead:

Use the same TurboTax account you used to file your original return.

Once you begin your amendment, you'll see your original return. Be sure to only make changes to the areas of your return that need amending. The refund calculator will start new at $0 and only reflect the changes in the refund or tax due.

Any changes you make to amend your federal return will automatically be transferred over to your state return.

If you want to track the status of your amended return, use the IRS Where's My Amended Return? tracking tool. Allow at least 16 weeks for the IRS to process your amended return.

Note: If your TurboTax navigation looks different from what’s described here, learn more.

[...]

TurboTax Desktop

1. Open the TurboTax Desktop software for the year you're amending. For example, you must amend your 2024 return in the 2024 version of TurboTax.
2. Under Need to Amend a Filed Return?, select Amend a Filed Return.
3. Select Amend for the return you need to amend. If the return you need doesn’t appear as an option, select Find a Tax File to find and load the return.
4. On the Do you need to change anything else screen, select Update next to the info you need to change.
5. Continue through the screens, make the changes you need to make, and carefully answer the remaining questions to finish amending your return.
6. Don’t forget to select Save As (or Duplicate on Mac) from the File menu when you save a copy of your amended return. This will preserve the tax return you originally filed. Give the file a different name from the original, like [tax year]_amended_tax_return_Smith.

Select Business Assets > Assets Being Depreciated and answer all questions to ensure the current depreciation is reflected on the amended return, if doing so.

Learn more: 

IRS - Instructions for Form 3115 Application for Change in Accounting Method 

Guidance for filing Form 8453 along with your Form 3115

[siebertclan]

@MelindaS1   I am absolutely mentally exhausted from trying to figure it all out. Like I said I was up until 3:30am trying to figure it out.  LOL.  At this point I just want the easy way.  In addition to being clueless on figuring out this depreciation nightmare, I also feel like the Business Loss Carryover needs corrected.  

#1 -- Isn't it easier to simply file the Form 3315 for both 2023 & 2024 instead if it is only dealing with TT missing the depreciation, rather than having to amend the last 2 year's returns? 

#2 -- If I do amend the returns, you say the amended info automatically goes to the state returns.  Does that mean I'd also have to amend the last 2 year's state tax returns?  Again, seems like an awful lot if Form 3315 can simply be filed instead? 

#3 -- What is the best way to just have a TT expert do this and the Business Loss Carryover on my behalf and I pay for that?  I attempted to do that last night, but it was all foreign to me, and my TT is NOT doing ANYTHING automatically for me.  :( 

Found this from the Nat'l Society of Tax Professionals....

[MarilynG1]

You can click on 'Live Tax Advice' at the upper right of your page to connect with an expert to see their recommendations.  You could open up your 2023 and 2024 returns, go to your Asset Summary, and Edit your trailer asset to see what your depreciation should have been for those two years (you'll need to know that in any case if you do file Form 3115).  At the end of the interview for this asset, you should get a screen telling you current year depreciation amount.

If you don't see that in your 2023 or 2024 returns, it may be an incorrect entry that didn't calculate depreciation for those years.  Possibly indicating that it was a 'vacation home' and not used entirely for business could cause that, so check Asset and Property Profile entries.

If you want to try amending your returns, you'd edit your Rental Asset correctly and depreciation will be calculated automatically and adjust your Schedule C or Schedule E amounts for you for Form 1040X. 

Here's more info on Depreciation for a Rental Trailer and All About Real Estate & Vacation Rentals.

@siebertclan