How far back can I amend my returns if I never took depreciation expense on my rental property?

Forum|Forum|2 years ago
February 18, 2024
2 replies
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Form 3115 required before I can do this?

TurboTax Online

JohnB5677

You can amend your previous tax returns for up to three years.

You can file back to 2020, but you must file it by 04/15/2024
You can also file 2021 and 2022, but you have at least a year to do it.
However. If you owned a depreciable asset before 2020 you must calculate the earlier years depreciation.
- You will not be able to take advantage of the pre 2020 depreciation.
- You will still have to claim it upon sale as depreciation recapture.

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CubsCarolAuthor

Employee

Thank you! Follow up quick question…do I also first have to complete Form 3115 for change in method of accounting (no depreciation to depreciation)? Or can I just go back and amend each of the last 3 years returns? I also have filed already for 2023. As such, am I still able to amend 2020 return?

Anonymous_

Employee

@CubsCarol wrote:

…do I also first have to complete Form 3115 for change in method of accounting (no depreciation to depreciation)? Or can I just go back and amend each of the last 3 years returns?

You need to file Form 3115; you cannot amend at this point.

Carl11_2

Employee

With rental property, if you did not depreciate, or if you used an improper method for "2 or more consecutive years", then amending is not an option. You have to file IRS Form 3115 with your current tax return in order to fix this.

IRS Publication 946, https://www.irs.gov/pub/irs-pdf/p946.pdf page 13:

The following are examples of a change in method of
accounting for depreciation.
• A change from an impermissible method of determin-
ing depreciation for depreciable property if the imper-
missible method was used in two or more consecu-
tively filed tax returns.
• A change in the treatment of an asset from nondepre-
ciable to depreciable or vice versa