The rental filing on Sch E in 2021 (when the rental started) had the following errors:
- Prior year cost basis was wrong, it uses the entire purchase price without taking the land value out
- The business percentage was wrong (taxpayer lives in the same house)
- Expenses were wrong (utilities not included in rent but deducted, percentage used to divide mortgage interest and property tax)
The 2021 was not filed by me. I am supposed to file the 2022 which is the 2nd year of rental. I would like to know what my options are.
- If the client does not want to amend, can I file the current year? If so how? If I treat the rental started from 1/1/2022? If I do this, and when the 2021 was audited or somehow amended, do I need to amend 2022 and all following years?
- If client wants to amend but does not want to send E-file. I doubt they will send the return out. Can I file the return based on the amended result?