Hi Community - I hope you are doing well. I would appreciate your expert advice for the below:
1) I recently discovered that my depreciation for a rental house for the past several years wrongly included "Land" value. Moving on and for 2023 - can I make the adjustment (i.e. exclude "Land" value) without the need to amend previous returns and does it matter that depreciation is the same (i.e. straight line) over 27.5 years? It will not be if I remove the "Land" value. Also, I could not take passive losses from the rental house for the past several years due to limitations.
2) In terms of depreciation recapture - will these adjustments to depreciation schedule affect how depreciation recapture will work and one could explain how it will take place - I will highly appreciate it?
3) How do I depreciate house improvements from 2 years ago - do I just add the amount and put 27.5 years for straight-line depreciation and how?
4) I forgot to include closing costs for this investment property I bought several years ago. Can I add those closing costs now and amortize those and how?
Hope for your advice.
