Foreign rental home depreciation
Feb 16th 2014, 6:06 pm
#1
Forum Regular
Thread Starter
Joined: Jul 2012
Location: NY
Posts: 75
Foreign rental home depreciation
What is the best way to estimate its price without the land?
Once I bought the house, it was evaluated by my home insurance provider for insurance purposes. Since that time I have been reporting that number to IRS.
Am I correct, or there are other formal ways to estimate a house price?
Another question is about house price correction. Our tax adviser entered incorrect house price 2 years ago by a mistake and we missed that typo. Does IRS accept such corrections? I don't owe any money to IRS - actually I cheated myself as the stated house price is almost 2 times lower than its real.... It will become important soon, once the morgage balance goes down and I get more profit.
Once I bought the house, it was evaluated by my home insurance provider for insurance purposes. Since that time I have been reporting that number to IRS.
Am I correct, or there are other formal ways to estimate a house price?
Another question is about house price correction. Our tax adviser entered incorrect house price 2 years ago by a mistake and we missed that typo. Does IRS accept such corrections? I don't owe any money to IRS - actually I cheated myself as the stated house price is almost 2 times lower than its real.... It will become important soon, once the morgage balance goes down and I get more profit.
Feb 16th 2014, 8:52 pm
#2
Retired
Joined: Apr 2004
Posts: 34,649
Re: Foreign rental home depreciation
Are you saying that the form 4562 was completed incorrectly?
If so - and you should validate this with a tax CPA - you may need to amend your tax returns for the affected years so as not to lose the benefit of the depreciation. Especially if the form 4562 was filed in a year for which the statute of limitations is still open.
Also - your comment about the mortgage balance doesn't make sense, as you claim depreciation regardless. It may increase your loss that you can carry-over to future years.
If you do need to amend, and decide to do so, you should check your return for anything else that needs amending. If you amend, you have to amend everything that needs correction, not just one thing.
If so - and you should validate this with a tax CPA - you may need to amend your tax returns for the affected years so as not to lose the benefit of the depreciation. Especially if the form 4562 was filed in a year for which the statute of limitations is still open.
Also - your comment about the mortgage balance doesn't make sense, as you claim depreciation regardless. It may increase your loss that you can carry-over to future years.
If you do need to amend, and decide to do so, you should check your return for anything else that needs amending. If you amend, you have to amend everything that needs correction, not just one thing.
Feb 16th 2014, 10:33 pm
#3
Forum Regular
Thread Starter
Joined: Jul 2012
Location: NY
Posts: 75
Re: Foreign rental home depreciation
Are you saying that the form 4562 was completed incorrectly?
If so - and you should validate this with a tax CPA - you may need to amend your tax returns for the affected years so as not to lose the benefit of the depreciation. Especially if the form 4562 was filed in a year for which the statute of limitations is still open.
Also - your comment about the mortgage balance doesn't make sense, as you claim depreciation regardless. It may increase your loss that you can carry-over to future years.
If you do need to amend, and decide to do so, you should check your return for anything else that needs amending. If you amend, you have to amend everything that needs correction, not just one thing.
If so - and you should validate this with a tax CPA - you may need to amend your tax returns for the affected years so as not to lose the benefit of the depreciation. Especially if the form 4562 was filed in a year for which the statute of limitations is still open.
Also - your comment about the mortgage balance doesn't make sense, as you claim depreciation regardless. It may increase your loss that you can carry-over to future years.
If you do need to amend, and decide to do so, you should check your return for anything else that needs amending. If you amend, you have to amend everything that needs correction, not just one thing.
For example, if the stated price of the property was $27.5k, I got $2k over 2 years; if it was $55k, I would get $4k. As I had zero profit for those 2 years, doesn't it matter how much the depreciation was? In my understanding I still have $55k and 25.5 years to deal with this amount - correct?
