Rental home purchase information did not tranfer to form 4562 and depreciation not taken over several years, how do I correct this?

Forum|Forum|1 year ago
February 13, 2025
2 replies
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Purchased a rentalbhomeni 2018, information was entered correctly, the home purchase information did not transfer to the depreciation work sheets or to schedule e and I just realized I am now missing any depreciation on the house for the last 6 years.

RobertB4444

You are entitled to a bigger deduction for all the years that you didn't take the depreciation. Unfortunately the IRS does not pay out refunds for anything older than three years.

You can amend your 2021 return to include the depreciation as long as you do so by April 15th. You can also amend your 2022 and 2023 returns.

The IRS requires that you take a depreciation deduction for each year that the property is in service so you will have to figure out the amount of missed depreciation from the 2018, 19 and 20 returns and enter that as accumulated depreciation when you go to the 2021 return.

@elsy-g

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AmeliesUncle

Did the 2018 return show the depreciation?

If so, I agree with the prior answer.

If not, you should go to a good tax professional that is familiar with Form 3115 to 'catch up' on the missed depreciation.

elsy-gAuthor

The information I entered into Turbo tax as a new asset in 2018 did not transfer to the 4562 form, so I did not receive any depreciation for that year or any year after, because the information did not show to carry over.

From the research I have done, you are correct, I need to fill out Form 3115 with the depreciation adjustment to recoup the depreciation missed for all years, on this return.

I did find instructions on how add 3115 form and partial instuctions on how to fill it out, but it is a diffult form to understand.

I also want to know if I add the asset to this years return, will it take into account the past 6 years and recalculate to continue depreciating for the next 21.5 years.

Thank you for responding.

RobertB4444

If you have filled out the form 3115 to take the prior years' adjustments then you will have to manually enter prior years' depreciation into this year's return in order to get the numbers to line up.

@elsy-g

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