In 2004 I inherited 50% of rental property appraised at $1,275,000 (63% structure, 37% land) = $11,878 in depreciation.
For whatever reason, I have been using a different value for depreciation: $1,500,000 (70% structure 30% land) = $19,091 in depreciation.
We sold the rental property in July 23, 2019 for $1,999,999.
What do I need to do address my over deducted depreciation?
Since I am recapturing the depreciation and paying tax on the larger accumulated depreciation, does it matter? Or, do I owe some back taxes, interest, and penalties?
