I purchased a rental home in October 2023 and did not have the county assessment on time when I filed my 2023 taxes. I ended up using the purchase price $585,000 minus land price from the old owner's assessment ($97,000) plus closing costs as my new basis (Turbotax calculated about $511,00 as basis).
When I finally received my new assessment in June 2024, the county upraised the land as $176,000 instead of $97,000 and structure as $411,000 vs my $493,00 that I used in Turbo tax + closing costs.
My basis will now be much lower. Do I need to change my basis and how do I do it?
Thanks.
