Skip to main content
October 10, 2023
Solved

Using Form 3115 to claim missed depreciation on a rental property

  • October 10, 2023
  • 1 reply
  • 0 views

Hi, I just realized I didn't enter depreciation information in all previous years' filing. The rental property was purchased in 2016 and has been in rental use since then. It looks like I need to use form 3115? But when I followed the steps outlined by TurboTax help website, after step 4, the property address defaulted into the form is my primary home, not the rental property address. It didn't look like I can override/change that address info.  Thoughts? 

 

***Below is the steps I found from TT Help website ********

In TurboTax Desktop:

  1. Select View from the top toolbar
  2. Then select Forms
  3. Select Open Form and  type 3115
  4. Select Form 3115, p1-3: Change in Accounting Method and select Open Form
  5. Complete these lines and boxes:
    1. Tax year of change: Enter current year
    2. Type of applicant: Choose what type of entity you are
    3. Type of accounting method change: Select Depreciation or amortization
    4. Part I: For question 1(a) DCN: Type in 7
    5. Answer questions 2 and 3
    6. Part II: Answer questions
    7. Part IV, question 25: Select No (to get to Part IV, you might have to select QuickZoom at the bottom of the form)
    8. Question 26: Enter the depreciation adjustment amount 
    9. Question 27: Answer No
    10. Answer question 28
    11. Skip to Page 8, Schedule E Change in Depreciation or Amortization and complete the section (you might have to select QuickZoom at the bottom of the form again)
Best answer by Anonymous_

That should be the name on your return (1040), not the address of the rental property.

 

Note that you need to attach a statement describing the property (i.e., your rental) and showing your calculations for the adjustment.

 

See https://www.irs.gov/instructions/i3115#en_US_202212_publink100035827

 

 

 

You need to attach a copy of Form 3115 to your return and you also need to send a signed copy to the IRS National Office (see the instructions for the correct address).

 

See https://www.irs.gov/instructions/i3115#en_US_202212_publink63215hd0e217

 

 

Note that, although the form is included in TurboTax, it's not really a DIY scenario.

1 reply

Employee
October 10, 2023

That should be the name on your return (1040), not the address of the rental property.

 

Note that you need to attach a statement describing the property (i.e., your rental) and showing your calculations for the adjustment.

 

See https://www.irs.gov/instructions/i3115#en_US_202212_publink100035827

 

 

 

You need to attach a copy of Form 3115 to your return and you also need to send a signed copy to the IRS National Office (see the instructions for the correct address).

 

See https://www.irs.gov/instructions/i3115#en_US_202212_publink63215hd0e217

 

 

Note that, although the form is included in TurboTax, it's not really a DIY scenario.

LINGXAuthor
October 10, 2023

Thank you for the reply. Then, I noticed that in the step-by-step guide, the software was asking (1) when was the rental property purchased [in my case, 2016] (2) when was it in service (3) was it 100% in service [I can answer yes to this question], and (4) how much depreciation has been taken in prior years. So in my case, if I answer those 4 questions with $0 depreciated before, will the software automatically compute the catch-up depreciation for the 2016 to 2022 period? Thanks. 

Employee
October 10, 2023

You can have the program calculate the depreciation during that period by entering the basis and the date the property was placed in service.