USA Incorrect Building amount used for Rental Depreciation


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Jun 19, 2018
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Need some advice. Recently noticed a 13+ year old error on rental cost/depreciation that was carried forward originally from a TurboTax return. .Land entered into TurboTax was slightly overstated (around $9K) and building cost was under-reported by $60K. Thus, depreciation has been under-reported.

It appears that Form 3115 is not applicable as this was a math or posting error. A CPA friend states the one simple way out would be to correct the land amount up to the original total cost which would be approx. $51K, which would help out with future basis upon sale. The property has appreciated significantly. It appears the correct way to treat this would likely be to enter correct building cost and prior deprec for current year and possibly amend two prior years and the prior missed depreciation is just lost.

What would you recommend as to how to deal with this? Thanks.
 
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kp1

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Sep 17, 2018
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I agree with your CPA friend. Most important thing to do is to get depreciation for the 60 k going forward.
 

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