Setup rental property in TT in 2009 with the asset correctly defined (180K total with 40K land value implying 140K building value) and depreciated accordingly. Had taxes done professionally due to complexity in 2012 and the asset was depreciated accordingly. For 2013 I transferred the values into TT but messed up in setting up the asset indicating it was 140K total value when I meant 140K as building value, so the asset was setup as 100K building value with 40K land value instead of 140K/40K. I didn't notice the reduced depreciation so it has been depreciated at a lower rate since then. In 2024 I sold the property and I'm trying to compute capital gains but the numbers are wrong, of course.
I need to fix this but I'm not sure what the correct fix is. This doesn't seem to be a Form 3115 type correction, but that is not clear. I can change the numbers in the asset definition in TT but that doesn't seem correct either. Would disposing of the current asset and create a new one (same dates of service, same previous depreciation value, corrected basis) be a solution?
Any guidance would be welcome.
