Arbasd
New Member

Investors & landlords

I am not sure how you handled the original closing costs.  But you should go back and amend up to 3 years of returns and report it correctly.  If you elect not to do so at the very least you should adjust the basis of the property and report the depreciation correctly going forward.   If you are ever audited the IRS will calculate the deprecation correctly because the rule is Allowed or Allowable.