What is "wrong here" is the taxpayer inherited rental property appraised at a certain date of death fair market value and then proceeded to use a much higher value as the basis for depreciation. As a result, the depreciation deductions for each year were inflated and thus inaccurate.
Frankly, if I, personally, had made this error and subsequently sold the property, I might tend to simply report the sales price and (incorrect amount of) accumulated deprecation and call it a day. However, that is not technically the correct approach to the ameliorate the error.
