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How to go forward if previously filed Form 8824 had an error affecting the basis of like-kind property received, line 25?

Hello.  More than 10 years ago completed a 1031 Exchange and filed form 8824.  Have now sold that property and completed another 1031 exchange, so must file another form 8824.   In reviewing the form 8824 filed ten years ago, found an error that affected the number in Line 25, the Basis of the property received.  When completing the current form 8824, should I use the incorrect "Basis of like-kind property received" in Line 25 from the form 8824 that I filed ten years ago, or should I use the correct number?  It is too late go file an amended return to correct the error on my ten year old filed form 8824.  As far as I can tell, this does not affect my taxes paid nor does it affect any of the tax returns I filed over the last ten years.  Thank you for your help!

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2 Replies
DaveF1006
Expert Alumni

How to go forward if previously filed Form 8824 had an error affecting the basis of like-kind property received, line 25?

At this point, just ignore the like-kind exchange transaction you completed ten years ago. Just use the correct basis on the property 10 years ago.  

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How to go forward if previously filed Form 8824 had an error affecting the basis of like-kind property received, line 25?

If you have been using the incorrect Basis, then your depreciation would be wrong.  If your actual Basis is higher than what you have been using, then when entering the "prior depreciation", you will need to enter what you SHOULD have claimed.

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