TaxGuyBill
Level 15
05-08-2021
02:07 PM
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Then you have a much bigger problem than just reporting the sale. Depreciation is REQUIRED. You need to know that and depreciate things.
You will need to file Form 3115 to 'catch up' on the depreciation. You may consider finding a mentor to help you with this tax return, or decline this client because it seems that you may not be familiar enough with how to handle rental properties.