Converted property I own 50% to rental in 2003. At the time put in FULL amount for cost basis due to how the TT interview was worded. I sold this property in 2021 and realized due to a form error that it was wrong all this time which meant depreciation auto-calculation was also wrong.
There is no tax amount impact from 2017-2020 since my depreciation/loss could not be taken and has been carrying over. For 2016 and prior there would be a moderate change of about 4.5K less of a loss on the rental property which would have some tax impact.
Do I realistically need to worry about 2016 and older or would it be acceptable and not cause major red flags if I submit my 2021 return with the correct cost basis, correct (lower) depreciation recapture based on what I should have been taking and correct (lower) rollover loss? I could also amend my last 3 years of returns to at least correct the depreciation/rollover/cost basis amounts if that helps or reduces chance of audit - though there would still be a point where it mismatches older returns.
I started down the 3115 route but a CPA said my situation would be a mess and expensive to deal with. I'm not sure it's worth it given zero tax impact since 2016 and modest impact before that.
Any advice would be great.
