cnxjo
New Member

positive 481a adjustment

I have a positive 481(a) adjustment due to prior incorrect rental depreciation.  Where do I enter this amount?  There is no place to enter "other income" on schedule E.  It will also not allow me to enter a negative value in "other expenses".  What are my options?

a.  add the positive adjustment to the amount shown on 1099-MSC and enter the sum as the total rent income?

b.  enter the positive adjustment in schedule 1 as "other income"?