change depreciation amount

I bought a $400,000 rental property (condo) last year. The land value was entered as $20,000. The land value was entered too low in last year tax return. It seems the land value should be $80,000 or $120,000. Can I change the land value to $80,000 or $120,000 this year without any tax problems in current year and future years?

Thanks!

1308

Employee Tax Expert

Apr 8, 2024 10:17:42 AM

Since land is not subject to depreciation, you may be able to report a higher value this year. However, if the total value of your property didn't change or if you need to adjust the basis of the residence for depreciation purposes, you should amend your prior year return to record this change.

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change depreciation amount