@vegg wrote:
At the time I bought out the 50% held by my parents the remaining basis to be depreciated was $25,422 and I continued on s/l basis with final depreciation on 2009 return.
You BOUGHT their portion, so you should have started depreciating your new 'half' using your purchase price (minus land).
You should also have been depreciating the improvements that did not qualify to be deducted ($19,621?). For anything that qualified to be deducted, that doesn't add to your Basis. You said you depreciated them, but that doesn't match up with what you said your total depreciation was.
It sounds like you have been under-depreciating things since 1994 (and maybe earlier, if the improvements were before that).
You'll need to figure out what you SHOULD have been depreciating and use that for your "prior depreciation".
Due the mistakes, you want want to file an extension and go to a tax professional this year to review things.
