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April 3, 2025
Question

Form 3115 unreported depreciation > 50,000

  • April 3, 2025
  • 2 replies
  • 0 views

Rental property sold 2024 unreported depreciation since 2008 > 50,000.  Line 28, how do I handle the entry? I would like to take it all as a 481a adjustment in 2024 since I will not have schedule E next year.

Unreported depreciation amount on page 4 part 1V line 26 would be negative number, right?

    2 replies

    Hi Palms
    Employee
    April 3, 2025

    Yes, negative adjustment. 

     

    Don't forget to attach a sheet showing your calculations.

    51popAuthor
    April 4, 2025

    Can I take all 51K in 2024? What box to check on 3115 line 28? 
    plan B : I can amend 2023 return take depreciation, then the amount for 3115 would be < 50,000K

    Hi Palms
    Employee
    April 5, 2025

    You can take the total $51k catchup in 2024.

     

    The box on Line 28 is for positive adjustments (you're making a negative one) so it's not applicable.