Can we choose rather to or not to deduct depreciate? is this an option?

[iri]

Can we choose rather to or not to deduct depreciate? is this an option? also, how do we calculate the realized gain / loss when no depreciation were ever deducted in the pass?

[abctax55 · Accepted solution]

You *can* choose not to depreciate...but you still get dinged for it upon sale.

Search for "allowed or allowable".

Form 3115 can often be used to fix prior depreciation issues.

[TaxGuyBill]

In my opinion you can't even choose to not claim depreciation, as you would be intentionally filing an incorrect tax return.  In connection with the Earned Income Credit, there is a Revenue Ruling (or something similar) that states you are required to claim all valid deductions (which includes depreciation).

[Just-Lisa-Now-]

and don't try and NOT recapture depreciation when you sell...IRS DOES catch this.  New client last year is still paying off the bill from a few years prior when they did their own return on TurboTax and sold a rental property, never took depreciation and didn't recapture it either.

[abctax55]

Bill is correct...there can easily be other areas of the return impacted by making the "bad" choice of not taking depreciation.  Plus, it is just wrong.