What to do when a client arrives with wrong depreciation sch

Have a new client for the 2022 tax year. They sold a rental property in 2022.

Looking at their depreciation schedule to determine basis and I see that they have been depreciating closing costs over 360 YEARS.

This poses 2 questions from me:

- How do you go about correcting depreciation schedules from year to year? What does the IRS do when you change horses in the middle of a stream.

- Would it be ok to leave things as is (keep it as 360 years)? Since they sold the house, it will only help their cause, no? Or will this leave them open to scrutiny since they should've taken more depreciation and have accidentally skirted some depreciation recapture tax here.

You file a 3115 to claim the allowed and unclaimed depreciation expense (ordinary deduction) and that will decrease the basis, which increases the gain on sale (capital gain).

I don't have the DCN at my fingertips, but there is a specific one for this.

You file a 3115 to claim the allowed and unclaimed depreciation expense (ordinary deduction) and that will decrease the basis, which increases the gain on sale (capital gain).

I don't have the DCN at my fingertips, but there is a specific one for this.

The costs in question are about $10K. Given that the property is already sold for 2022, do you think a 3115 is necessary in this situation?

You file a 3115 to claim the allowed and unclaimed depreciation expense (ordinary deduction) and that will decrease the basis, which increases the gain on sale (capital gain).

I don't have the DCN at my fingertips, but there is a specific one for this.

I'm thinking 7 or 107.