Thanks for the input. However, the property was sold. Client came to me because another preparer (CPA) said that she had a huge gain after selling the property after 2 3/4 years of ownership. I reviewed the return and after asking a few questions, realized that the property was undervalued when the depreciation schedule was established. Depreciation taken is less than what should have been taken and her tax return is showing a big capital gain because of the undervaluation. How do I fix this?