TP did not claim rental deduction including depreciation on 2021 original returns and now want to amend to include that.
I understand that depreciation can not be directly added to the amended return but rather file on 2022 tax return by form 3115.
The depreciation is a small amount about $4000.
I happen to find an article online mentioning there is a 2 year rule. I have not found such info anywhere else including 3115 instructions. Does anyone know about it?
"The 2-year Rule
The use of an incorrect method of depreciation is considered the use of an incorrect accounting method. Once an incorrect accounting method has been used for two years, Form 3115 is required to change accounting methods back to a correct method, or to begin taking depreciation.
Note: If no depreciation had been taken and only one year has passed the return may be corrected via amendment because the incorrect method had only been used for one year."