In order to make adjustments to your prior years' depreciation, you have two options: File amended returns. Of course this is cumbersome, as you have to file a Form 1040X for each year. Moreover, to claim a refund, you must file Form 1040-X within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later. File a Form 3115 - Application for Change in Accounting Method. This will allow you to calculate the correct amount of depreciation for all prior year's, and make a single adjustment on your 2019 tax return. Form 3115 is available in TurboTax Desktop, but not Online. You might want to consult a local tax professional about filing form 3115.

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Hi Community,In previous years I used the INCORRECT type of ASSET and incorrect DEPRECIATION method for a mobile home. How can I fix this error? Please help!

Forum|Forum|6 years ago
January 29, 2020
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TurboTax Self Employed Online

Best answer by ThomasM125

You enter the adjustment as an "other expense" on the business schedule to which it pertains.

To delete the asset, you edit the business entry where the asset was entered, and look for "Business Assets" in the list of expenses and edit the menu choice "Assets being Depreciated." You will see a list of the assets for that business, with an option next to them to delete the asset.

You do need to enter a new asset. Input the cost, date purchased, date put into service and other questions asked. Select the proper asset type and TurboTax will calculate the correct accumulated depreciation.

You would have to add the adjustment if positive. To do so, add an "other" expense as a negative number.

D

DavidD66

In order to make adjustments to your prior years' depreciation, you have two options:

File amended returns. Of course this is cumbersome, as you have to file a Form 1040X for each year. Moreover, to claim a refund, you must file Form 1040-X within 3 years after the date you filed your original return or within 2 years after the date you paid the tax, whichever is later.
File a Form 3115 - Application for Change in Accounting Method. This will allow you to calculate the correct amount of depreciation for all prior year's, and make a single adjustment on your 2019 tax return. Form 3115 is available in TurboTax Desktop, but not Online. You might want to consult a local tax professional about filing form 3115.

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A

Ara441

Hi,

Thanks for your reply.

So, once I have completed the 3115 form.

How to make the corresponding adjustments in TT?
How to eliminate the asset that is already in TT using the incorrect depreciation method?
Must I create a new asset in TT using the correct depreciation method to calculate the proper depreciation?
If the depreciation adjustment is positive, must I add it to income on my tax return?

I will appreciate your help so much.

A

ara44Author

Hi,

Thanks for your reply.

So, once I have completed the 3115 form.

How to make the corresponding adjustments in TT?
How to eliminate the asset that is already in TT using the incorrect depreciation method?
Must I create a new asset in TT using the correct depreciation method to calculate the proper depreciation?
If the depreciation adjustment is positive, must I add it to income on my tax return?

I will appreciate your help so much.