How can I correct the basis that was entered wrong 13 years ago. I have not sold the property. I still own it.

[Jeff1117]

Title: Incorrect basis of rental property for 13 years. I have not sold it.

While gathering the information to begin my TurboTax taxes I discovered that the basis for Depreciation has been wrong for 13 years.

On 2/4/2008 I purchase a residential rental for $110,873. The appraisal district listed the land at $10,561, therefore the basis for depreciation should have been, $100,312. The correct depreciation should have been $3,648/year.

I looked at all my taxes from 2009 through 2020 and discovered different depreciation basis

Years 2017 thru 2020: $73,322;  year 2016: $83,873; year 2015: 98,600; year 2014: $94,434.

From year 2009 thru 2013 there are no form 4562 worksheet available to look at the basis; however the depreciation is 3417.  None of these depreciation basis makes any sense.

QUESTION: How can I correct the basis that was entered wrong  13 years ago. I have not sold the property.  I still own it for retirement income.

[TaxGuyBill]

You seem to be on the wrong website.  This website is for tax professionals.  If you are using TurboTax or some other do-it-yourself method, please visit the TurboTax Help site for support or schedule an appointment with a tax professional in your area.

[mhsmith53]

To answer your question:

Change in Accounting Method Form 3115:
Form 3115, Change in Accounting Method, is used to correct most other depreciation errors, including the omission of depreciation.

[TaxGuyBill]

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@mhsmith53 wrote:

To answer your question:

Change in Accounting Method Form 3115:

Nope.

[mhsmith53]

After doing some more reading I agree with TaxGuyBill.

Appears you would need to amend returns and eventually use Form 3115 when sold.
Below is from this link: https://www.msatp.org/fixing-the-error-how-do-we-solve-depreciation-mistakes/

Amending returns will only correct depreciation errors that have occurred in the last three years. Errors that have occurred before that cannot be “caught up” on current or amended returns and will only be “caught up” when the asset is sold using a Form 3115 and Code 107 as discussed below.