Dear Community:
I was hoping you can help me. 3 years ago, I started using Turbotax and at that time, I entered in the basis for my existing rental property incorrectly and thus, for the last three years, I have been depreciating more than I should have.
What should I do?
Option A: I could do a 1040x for each of the three years but this seems so complex.
Option B: Can I just correct the basis this year, taking into account the TOTAL depreciation thus far I have expensed including the incorrect amounts these three years and just move forward?
My preference is Option B. It would mean that for three years past, I should have paid more taxes (I had a higher depreciation expense) but it also means that in the outyears, I will now have a lower depreciation expense than I would have if I did not make the mistake since the basis will be lower.
Any help is appreciated. Thank you! Ray
