“#1. Do I or can I back date the depreciation of the last 10 years or is that lost.?”=========as you forgot to take depreciation in prior tax years, you must amend your tax returns. Depreciation must be claimed in the years you are entitled to take it under federal law or you lose it. In general, you are only allowed to file an amended returns to correct your depreciation amount if any of the following applies: you claimed the incorrect amount because of a mathematical error made in any year; you claimed the incorrect amount because of a posting error made in any year; you have not adopted a method of accounting for property placed in service by you in tax years ending after Dec. 29, 2003; or you claimed the incorrect amount on property placed in service by you in tax years prior to Dec. 30, 2003. If you forgot to take depreciation in prior years, you would fall within the third category of individuals who would be able to file an amended returns.However, for your refund claims, must file a claim for a tax refund by the later of three years from the date you file the tax return or within two years of paying the tax. If you do not make the claim within this time frame, the IRS has the authority to reject the refund request.For example, if the original due date was April 15, 2011 for tax year 2010, you would have three years, until April 15, 2014, to file a tax return and claim a refund. The IRS does not levy a late filing penalty when you did not have an obligation to file and is only filing to claim a refund.So you can claim your refunds on 2010/2011/2012 returns as long as you are subject to tax refunds due to past depre claims.
#2. YOu said "you will have to figure out the depreciation you SHOULD have taken, and recapture that on sale as ordinary income." but I am NOT selling. Do I still figure out the figure and claim? I guess that is #1's inquiry==========yes;you only need to recapture unrecap depre on the disposition of the rental pty;as mentioned previously, you need to file amended returns to claim your past depre not taken previously on your returns.