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@david3 wrote:

If the TP did not have material participation in 2022, when the STR property was purchased, but does have material participation in 2023, how do you handle changing the depreciation in PS from 27.5 years to 39 years?

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Material Participation has nothing to do with the depreciation recovery period.  A short-term rental is 39 years regardless if they Materially Participated or not.

Tax year 2023 should be 39 years.  They technically should amend 2022 to correct it, but if they don't want to do that, you can still prepare a correct 2023 tax return.

Because they used the wrong depreciation recovery period for only one year, you can switch to 39 years without Form 3115.  However, if they don't amend, you are supposed to enter the amount they actually claimed last year as "prior depreciation".