I have a residential rental property that was sold in 2017. Prior to renting it, it was my family’s primary home. We converted it to a rental on 4/25/2010. We had a CPA do our taxes the first 2 years because of other complexities. I've been using TurboTax since 2012. I just looked back at my 2010 and 2011 returns and she reported the property as non-residential and used a 39 year depreciation schedule?!! The property is clearly a residential single family townhome. She also chose a cost basis of~ $190,000
CPA -
2010 - Depreciation $3054
2011 Depreciation $4879
TurboTax (I started doing my taxes here). I used a cost basis of what I paid for the home, $224,922 (which is wrong because it included 10K land). TurboTax forced a 27.5 year depreciation schedule.
2012 - 8179
2013 - 8179
2014 - 8179
2015 - 8179
2016 - 8179
Summing all of what I actually claimed for those years, I get: $48828.
Should I report that - OR - Should I report:
A cost basis of 214,922 (224-10K for land) on a 27.5 year schedule with 6 years 4.5 months of rental service?
214,922 / 27.5 = 7815.34
7815.34 * 6.3 = $49236
Should amend my returns?
