Scenario: Tax preparer relied on tax payer accounting records to prepare a partnership return from 2007 to 2012, return were always timely filed. In 2007 the partnership bought land and developed it at an approximate cost of 1.3M and the land cost was around 900K, somehow on the books only 600K was allocated for construction cost and 254K for land, the rest was expensed. Fast forward to 2012, building/land was sold for 3M resulting in a gain of over 2M, from looking at one of the partner 1040 he didn't benefit from the loss in the K-1's because his other properties were at a loss already. Can the partnership returns be amended to capitalize the improvement back in 2007 when everything started?
thanks
mas