Thanks @DianeW777 for such a detailed and prompt answer, very helpful!
Looks like your recommendation is to just correct everything with 2023 tax return and that way there would be no need to worry about amending FY21 and FY22 returns. If this is not right, please correct me.
Based on your suggestion I have a couple of questions:
- I read on forums that apart from mailing (not e-filing) the FY23 tax return with 3115 form, there is also a need to fax or send a copy of 3115 form to another IRS address. Is that still needed?
- As per below quote, I would just like to clarify that though I didn't claim any depreciation on FY-21, but I did claim it on FY-22 (which was also not using correct cost basis though). Does this still qualifies me to do Form 5113 change and do a change in accounting method?
Why am I adopting a change in accounting method? Not claiming depreciation in two or more years indicates that you've chosen an accounting method without depreciation. In this case, you must now elect to change your accounting method to include depreciation.
