I have rental properties. I used depreciation before but I don't want to use it this year. Is it OK to do so?

Forum|Forum|1 year ago
March 3, 2025
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Vanessa A

Not this is not OK to do as depreciation is required. If you ever sell the property, you will still need to recapture the depreciation you did not take as the depreciation recapture is the amount allowed or allowable, not the actual amount you took for residential rental property. This means if you were able to fully depreciate the house when you sold it, you would "be charged" in the recapture the full amount you could have taken even if you did not take it.

When you choose not to take it or accidentally leave it off, it does become slightly complicated having to fix not taking it.

What should I do if I didn’t take depreciation on my rental property?

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AmeliesUncle

@Vanessa A wrote:

When you choose not to take it or accidentally leave it off, it does become slightly complicated having to fix not taking it.

What should I do if I didn’t take depreciation on my rental property?

That does not apply if a person starts taking depreciation (in the first or second year), then quits claiming depreciation. In that scenario, it can only be corrected by amending.