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Level 2
posted Jul 9, 2020 11:59:51 AM

Can i fix tax depreciate base if I got it wrong

I have a rental property and deducted the depreciation last year but I got it wrong. I bought the property for $190k but i mistakenly put $110k for the depreciation base. The land value is $50k which i deducted. So how can i correct it for 2019?

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3 Replies
Level 15
Jul 9, 2020 12:15:36 PM

@Seanz wrote:

So how can i correct it for 2019?

You should amend your 2018 return to include the correct basis, which will affect your 2018 depreciation deduction.

 

See https://turbotax.intuit.com/tax-tips/amend-return/how-to-file-an-amended-return-with-the-irs/L6kO691J8

Expert Alumni
Jul 9, 2020 12:17:31 PM

First, you will want to amend the 2018 return to correct the incorrect depreciation. When you amend it, you can print the return and the worksheets, which will show you the correct depreciation to be carried forward to 2019. 

 

@Seanz

 

 

Level 15
Jul 9, 2020 1:53:32 PM

@Seanz wrote:

The land value is $50k which i deducted.

 

So how can i correct it for 2019?

YOU don't deduct the land.  Enter the TOTAL price, then as a separate entry you enter the land.  Then the program will deduct the land.

 

After you amend 2018, then on your 2019 return you will "edit" the "asset" for depreciation and you can change things to the correct numbers.  When it asks you for the "prior depreciation", but sure to enter what you SHOULD have taken in 2018 (if you leave it blank the program will automatically assume that).