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September 20, 2024
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Form 3115 to fix overclaimed deprectation - need input on the steps followed

  • September 20, 2024
  • 3 replies
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hi all, if you have experience with form 3115 would appreicate your help.
This is in context to a rental property which we started renting from last two years and since than the cost of property and land was written more than what it was ( current price was used vs what I bought it for). . This year while doing my own taxes I figured out the cost is incorrect so i reaced out to the tax preparer who did last two years and he helped prepare a form 3115. I am doing the rest of taxes myself for 2023 through turbo tax desktop version.

Anythign I am missing or need to do differently or update in tax prep software?

i have done the following:

  1. I added the overclaimed deprecation amount in misc expenses.

  2. I wil be e-filing while sending 8453, the form 3115, 3115 statement via mail.

  3. I override the turbo tax deprecation field for that rental property and the value i put in is the difference of accumulated deprectation till 2022 and overclaimed deprecation. My tax refund reduced by ~50.

Thanks,

Aysha

    Best answer by AmeliesUncle

    Using an incorrect Basis is not a method of accounting.   I'm sorry to tell you this, but Form 3115 does not apply.

     

    It can only be corrected by amending.

    3 replies

    Employee
    September 20, 2024
    No text available
    ayshakeenAuthor
    September 20, 2024

    Yes

    Employee
    September 20, 2024
    No text available
    Employee
    September 20, 2024
    No text available
    ayshakeenAuthor
    September 20, 2024

    What you said makes sense. It shoud be added in rental income than? 

    September 20, 2024

    Using an incorrect Basis is not a method of accounting.   I'm sorry to tell you this, but Form 3115 does not apply.

     

    It can only be corrected by amending.

    Employee
    September 20, 2024
    No text available