I have co-owned a small rental property with others for 10 years. I have never reported anything about it on my tax returns, thinking that it just generated losses anyway (mortgage interest + taxes + condo assn fees + depreciation have always exceeded the rental income). I'm now realizing I should have reported--that when we ultimately sell, I'll have to reduce the basis by the depreciation anyway, so I may as well have been accumulating the passive activity losses to offset the gain. I will at least start reporting this year (and figure depreciation based on an in-service date of 10 years ago). Question is: how far back should amend? And,if I amend for years in which I filed more than 3 years ago, may I only report the rental income, or will I also be able to report the mortgage interest, property taxes, condo fees and depreciation? If I report all the deductions, would the resulting losses (and there would be losses each year) be able to be carried forward?
