Its the vibe....Sad to say I see this many times a year. Question : What else is wrong ?? You wouldn't know. I had a SS person approach me. Had years of accum losses while he was expat. They told him losses are lost when he comes home. They also told him he had a non-discount CGT event. I told him to get a valuation and tax on it was halved. And offset by the losses I checked and was satisfied were real. Then I found they hadn't claimed Depn for two years. End result. Saved $60K tax. Still had losses left.
I will upset Gary again but I say all the time there are heaps of numpty accountants who know jack about property and taxes. Use a property focussed tax practitioner if you own a IP.