@golfandtaxes wrote:
How would you go about correcting tax returns for an incorrect basis used? Basis for depreciation over years is too low. We can amend 3 years or wait until year of sale and file form 3115 to catchup on missed depreciation?
There is sort of a split of opinion on this scenario with some professionals asserting that an incorrect basis can be adjusted by filing Form 3115 and others asserting the use of an incorrect basis is not an impermissible method of accounting that is subject to a 481(a) adjustment on Form 3115 (i.e., prior, open, returns can only be amended).
Regardless, you should consult a tax professional with respect to this situation. If it is determined that filing Form 3115 is the appropriate course of action, you will need professional tax guidance and/or return preparation.
