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@cdgbaker wrote:

Do I go back and amend the 2016-2019 returns to recalculate the correct depreciation minus the land value? 

Since the installment sale has not been completed, will the carryover passive losses will continue until the sale is completed? 

What happens if the final sale does not go through?

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You could amend, but I don't think I would.  You use the greater of the depreciation that should have been taken and the depreciation that actually was taken.  So in your case you would just use the amount that actually was taken.

The carryover passive losses should be proportionately released each year based on the Installment Sale percentage.  See §469(g)(3).

Don't worry about the sale not going through unless it actually happens.  Take one day at a time.  If/when that happens, if you need help you can come back and ask any questions.