[{"data":1,"prerenderedAt":7},["ShallowReactive",2],{"faq-standard-12604":3},{"rec_id":4,"title":5,"text":6},"12604","What if I haven't taken depreciation for my rental property?","If you haven't been depreciating your rental property for more than one year, you can recapture all of the missed depreciation from prior years by doing the following:\n\u003Col>\n\u003Cli> Contact a local tax professional to prepare \u003Ci>Form 3115, Change of Accounting Method\u003C\u002Fi> to change your depreciation method from using no depreciation to using the Straight-line, 27.5 years depreciation. Your tax professional can help you prepare this form and send a copy of it to the IRS. You'll then file the original copy with your return. \u003C\u002Fli>\n\u003Cli> Get the prior depreciation calculated by the software: \n\u003Col>\u003Cli>Select Income > Rental Income (Schedule E) > Depreciable Assets > + Add an Asset. \u003C\u002Fli>\n\u003Cli>Enter the rental home as if the property has always been depreciated (date placed in service is the date in the past you started renting) and continue to the screen labeled \"How much depreciation have you taken?\" \u003C\u002Fli>\n\u003Cli>You'll see that the software has calculated an amount of depreciation taken in prior years. Enter the amount on this screen in the \"Enter the total accumulated depreciation, other than prior Section 179 expense and bonus depreciation, taken in prior years for this asset\" box.\u003C\u002Fli>\n\u003Cli>Also write this amount down so you have it handy since you'll need it for \u003Ci>Step 5\u003C\u002Fi> below.\u003C\u002Fli> \n\u003Cli>Click Save and Continue.\u003C\u002Fli>\u003C\u002Fol>\u003C\u002Fli>\n\u003Cli> Return to the \u003Ci>Your Rental\u003C\u002Fi> screen by selecting Income > Rental Income (Schedule E) and then click \"Edit\" next to your rental. \u003C\u002Fli>\n\u003Cli> Scroll down to the \u003Ci>Expenses and Assets\u003C\u002Fi> section and click \"Edit\u002FAdd\" next to \u003Ci>Expenses\u003C\u002Fi>.\u003C\u002Fli>\n\u003Cli> Scroll to the \u003Ci>Miscellaneous Expenses\u003C\u002Fi> section and add the prior depreciation calculated by the software (found in Step 2 above) with a description of \"Section 481a Adjustment.\" \u003C\u002Fli>\n\u003C\u002Fol>\n\u003Cbr> \n You can still e-file the return, but you'll need to print and complete \u003Ci>Form 8453\u003C\u002Fi> (this a coversheet for tax return attachments that need to be mailed that you can find online) with the \u003Ci>Form 3115\u003C\u002Fi> box marked. You will then mail the \u003Ci>Form 8453\u003C\u002Fi>, and the \u003Ci>Form 3115\u003C\u002Fi> to the following address:\n\u003Cbr>\u003Cbr>\nInternal Revenue Service\u003Cbr>\nAttn: Shipping and Receiving, 0254\u003Cbr>\nReceipt and Control Branch\u003Cbr>\nAustin, TX 73344-0254\u003Cbr>",1793131298826]