@M-MTax wrote:
@user17684044706
You have a LOT of complicating factors here and need a tax professional to unravel this situation.
The answer provided by @Opus 17 makes too many assumptions and leaves out the aforementioned complexities.
The gain includes depreciation recapture based on depreciation he claimed or could have claimed, even if he didn't claim it. A 2025 return can be prepared based on the known facts without fixing prior mistakes. There may be other very good and important reasons to file the correct prior tax returns.
