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jgalvarez23
New Member

I need help changing the cost basis for a rental property.

I made a mistake with the building and land cost basis with a rental property last year. Turb Tax is transferring the same basis to 2016 taxes. How do I change this in turbo Tax? Will it allow me to change it?
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pk
Level 13
Level 13

I need help changing the cost basis for a rental property.

the correct way to do this is to amend the 2015 return corrceting the mistake and then the  federal carry-over worksheet will bring the correct information to 2016 --- this may mean that you have start the 2016 from scratch for the  new federal worksheet to take effect  --- ( this best done on a desk-top version for both 2015 and 2016 ).; 

the second way is to start 2016 with fresh asset worksheet ( with the correct figures) and say that this was put in service in 2015 -- TurboTax will compute the correct depreciation for 2016.  You will still have to amend the 2015 to set the record straight on IRS files.  Hope this helps

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4 Replies
pk
Level 13
Level 13

I need help changing the cost basis for a rental property.

the correct way to do this is to amend the 2015 return corrceting the mistake and then the  federal carry-over worksheet will bring the correct information to 2016 --- this may mean that you have start the 2016 from scratch for the  new federal worksheet to take effect  --- ( this best done on a desk-top version for both 2015 and 2016 ).; 

the second way is to start 2016 with fresh asset worksheet ( with the correct figures) and say that this was put in service in 2015 -- TurboTax will compute the correct depreciation for 2016.  You will still have to amend the 2015 to set the record straight on IRS files.  Hope this helps

TaxGuyBill
Level 9

I need help changing the cost basis for a rental property.

In the event your 2015 rental had a loss, and the loss was unallowed due to the Passive Loss Limitation (your tax return would have Form 8582), then you also need to make sure your 2016 shows the proper (amended) amount of Passive Loss Carryover.
pk
Level 13
Level 13

I need help changing the cost basis for a rental property.

thank you TaxGuyBill -- for the additional info that I forgot about --pk
TaxGuyBill
Level 9

I need help changing the cost basis for a rental property.

That's the trouble with these forums ... it is almost impossible to cover every 'what if' scenario the user may have.
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