A wrong-basis problem cannot be solved by changing one number on the latest schedule. The starting basis, land allocation, capital improvements, personal-use conversion rules, and prior depreciation all flow through the year-by-year ledger. The correction needs to reconcile every one of those pieces.
What does the IRS call depreciable basis?
IRS Publication 946 says the basis for MACRS depreciation is cost or other basis multiplied by the business or investment-use percentage. Land is not depreciable. Closing costs and later improvements can change the building basis, while credits, casualty adjustments, and prior depreciation can change adjusted basis.
What if a former home became a rental?
A conversion from personal use introduces another comparison. IRS guidance generally uses the lower of adjusted basis or fair market value at conversion for loss and depreciation purposes, with land separated. That is different from simply taking 80% of the original purchase price. The conversion date and contemporaneous records belong in the file.
How is the correction tested?
Rebuild the placed-in-service schedule under the proposed basis and compare it with every filed return. The difference may feed a section 481(a) adjustment if the CPA confirms that an accounting-method change applies. The paid computation cites each source record so the CPA can replace any disputed input before filing.
What can the Reality Contact check provide?
The free estimate applies the disclosed 80% building assumption and 27.5-year residential recovery period to the facts supplied. The $99 computation replaces the rough split with source records and builds the allowed-or-allowable schedule and section 481(a) adjustment. The $249 packet adds the corrected ledger, forward schedule, draft Form 3115 sections, and CPA cover note. The CPA reviews, signs, and files.
Where does the operator boundary sit?
This is not tax advice. Reality Contact, LLC prepares a computation and draft workpaper for a CPA. We do not prepare a return, sign or file Form 3115, represent a taxpayer, or decide whether a method change is available. The taxpayer's CPA reviews and files. The free estimate uses a disclosed 80% building assumption and the 27.5-year residential recovery period. It is a real arithmetic check and a demand sample. We reply by email; the paid work replaces the rough land split with the assessor record and closing documents. The current source check starts with this published record.