Your interests may best be served by using a tax pro. cost 150K - does that include closing costs that become part of the total basis? from that, you have to subtract out the value of the land in 2011 to come up with what the correct basis would be for deprecitaion purposes. then you would have to compute the correct 2011- 2021 depreciation that should have been taken and subtract out the amount you actually taken. that becomes your section 481 adjustment which would probably need to be included on the rental schedule for 2022. an extremely rough estimate is that the adjustment would be about 36% to 40% of the difference in depreciable tax basis. that's a huge deduction that may subject your rental to the passive loss rules. if you treat the rental as a qualified business for the 199A/QBI deduction then there's the issue of proper allocation of this adjustment to the years QBI was in effect. then if you have state income taxes what are its rules - do they follow the federal
