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@LARRYLIFE wrote:

My client was gifted a rental by his father 2021.  And shortly after that he sold the property.  

Also there should have been an additional $9k in recognized gain in 201 on the second Like Kind Exchange.  ... The father was in the 15%tax bracket in 2017 so there wouldn't be any additional tax. 

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This is not your question, but a couple of things to consider:

(1) Why did the father gift the rental and then the son sold it right away?  Did the son keep the proceeds?

(2) If I remember correctly, I think the Unrecaptured Section 1250 gain is the first part that is taken for the recognized gain.  So it should have been taxed at his regular tax rate (15%???).

But as was mentioned, for reporting the sale, you use the actual Adjusted Basis.  It does not matter if errors were made before, you need to calculate the correct amounts.  That includes the prior depreciation that SHOULD have been taken, if they did not take enough if they had properly done things.