@mishelk wrote:
I placed my residence into rental service in 2011, at the time the preparer recorded the value of the structure too low by 80k.
It may not be the "value" of the structure. In most cases, it should be the "cost" of the structure.
Was it your personal residence? If so, the depreciation the LOWER of (a) your Adjusted Basis (usually your original cost, plus cost of improvements, minus any prior depreciation) or (b) the Fair Market Value when it was converted.
And did you factor in the land? The land is not depreciable, so the amount used for depreciation is the total cost, minus the land (you enter both the total cost and the land into the program).
With all of that in mind, did the preparer use the wrong amount? If so, yes, you can start using the correct amount now and amend any 'open' prior tax returns to correct it.
