Thanks for any help.
Suggestion:
Yes, you can amend your tax return using 1040x along with the correct schedule E (and any other schedule that may contain the error).
Just a word of caution. Rentals are considered "passive income," and you can only offset passive losses with passive gains. In other words, you may not even be able to use the loss. Here's the publication you need to read to determine if you can take the loss or not. http://www.irs.gov/publications/p527/ch03.html
If you decide to report a loss, use these forms.
1040x
http://www.irs.gov/pub/irs-pdf/f1040x.pdf?portlet=3
schedule E
http://www.irs.gov/pub/irs-pdf/f1040se.pdf
Hope this Helps!
Dawson
{ 5 comments… read them below or add one }
Hopefully you caught this before filing another return–after 2 returns, you cannot amend to fix depreciation issues.
As for the 1040x, new schedule E (assuming a for-profit rental) and possibly form 8582.
No you can't just claim it next year. You can amend your 2009 return and claim it – you'll need a form 1040X and a schedule E where you show the corrected amounts.
You have to file these in the year that they occur. File a 1040x amended return and file a Schedule E to detail the offsets you are claiming.
To make a correction for missing information on a prior year return you must file an amendment to that return using IRS Form 1040-X. Losses normally are only reported in the year that they occur.
amend with a 1040X