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Old 02-12-2017, 04:34 PM
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Converted to rental, using wrong basis.

I converted my primary residence to a rental in 2010. I have been using $150k as basis (purchase price) for depreciation, but current research says I should have used $120k (fair market value at the time of conversion).

It looks like I cannot amend tax returns more than three years old.

Should I continue to use the $150k basis, or correct the last three years to use the $120k basis, or is there another option?

Thank you!



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Old 02-13-2017, 04:13 AM
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Join Date: Oct 2010
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Quote:
Originally Posted by yaqud View Post
I converted my primary residence to a rental in 2010. I have been using $150k as basis (purchase price) for depreciation, but current research says I should have used $120k (fair market value at the time of conversion).

It looks like I cannot amend tax returns more than three years old.

Should I continue to use the $150k basis, or correct the last three years to use the $120k basis, or is there another option?

Thank you!
You need to make adjustments in the current year return by applyibg the accurate basis fo r the rental home



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