I purchased a condominium in 2006 and lived in it for four years. I have been renting it out ever since. I never knew about depreciation until I started listening to BiggerPockets and realized I have been missing out over the past six or 10 years. I have been doing my own taxes on TurboTax, but definitely will be using a CPA from now on.
My question is if there is any good advice on how to retro actively claim depreciation or what the best strategy for managing my mistake will be?
Though I live in New Mexico now, my property is in Massachusetts, not sure if it makes any real difference.
you will have to file taxes again from what i understand.
talk to a CPA
@Timothy Lin You need to file Form 3115. These can get tricky as many statements are required to be attached, and you need to use the right wording. As a CPA specializing in real estate, I have done dozens of these and can help you with this. Feel free to connect over BP and private message me.
Yes, I'm in CA, but I have clients all over. As a matter of fact this past tax season I helped someone who was a resident of MA and had property in MA and MO with their historical depreciation calculations.
You definitely need a CPA.
Past depreciation notwithstanding, it is my understanding that if you don't take depreciation, when it comes time for depreciation recapture, you pay that tax even if you didn't take the depreciation. So it's a double whammy.
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