Yes, add the excess depreciation allowed to the rental income in 2024. The carryover passive activity losses (PALs) will automatically be reflected because it will offset any income from the rental in 2024. This seems to explain the 'tax favorable' adjustment they refer to.
It was used to reduce your rental income, therefore it should increase the rental income. It is used in the same location of your return which is Schedule E, rental income.
@sking10
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