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New Member
posted Feb 14, 2025 11:11:58 AM

Should I try to override an incorrectly reported cost basis and income for a rental property?

The property is 50/50 ownership with different taxpayers. Last year I erroneously entered the full cost basis while having TT calculate my 50% ownership. Thus my income was changed to 50% of my 1099-misc (which was correct as both owners get separate 1099s with their amount). I didn't catch the change/error. Assume I need to amend 2023. Now having sold the property, the same thing is happening--half of my income reported from the 1099, and the full loss on the sale is being calculated as it is based on the 100% cost I reported last year. How can I best fix this mess?

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2 Replies
Expert Alumni
Feb 14, 2025 1:30:49 PM

The best way to fix this is to go back and fix the 2023 return so that it is correct THEN come back and start on 2024.  Delete anything that you have done for 2024 so far so that you can roll the amended return over into this year and make 2024 a lot easier on you.

 

@mateoboneo-aol-c 

New Member
Feb 17, 2025 1:01:40 PM

Thank you. I amended my 2023 return; however, I had already paid for 2024 in order to review my forms, and thus caught the mistakes, so was unable to clear, roll over the amended info, and start over. Instead I deleted the rental information and redid with the correct information. So at least the information is correct, although the procedure may not be exactly how it should have been done.