Can I amend 2017 return in order to file 3115 and then report prior years depreciation on sale if rental property in 2018 return?

[ikenacornett]

I sold the rental property in 2018 and it looks like this would disqualify me from the automatic change procedure on form 3115. 

If I amend 2017 return to attach 3115 then I think it will be eligible for automatic change procedure. Then I can list prior years depreciation on the 2018 return for sale if business property. 

Do you agree?

[KittyM]

Unfortunately, you cannot file a Form 3115 after the due date of the return for the year you are filing it, including extensions.  From the IRS' publication Instructions for Form 3115

"Except if instructed differently, you must file Form 3115 under the automatic change procedures in duplicate as follows.

• Attach the original Form 3115 to the filer's timely filed (including extensions) federal income tax return for the year of change. The original Form 3115 attachment does not need to be signed.  

• File a copy of the signed Form 3115 to the address provided in the address chart on this page, no earlier than the first day of the year of change and no later than the date the original is filed with the federal income tax return for the year of change."

[ikenacornett]

Can I file 3115 on a timely amended return for last year?

[ikenacornett]

Part II question 3 did applicant cease...if yes cannot use automatic change procedure

[KittyM]

Non-automatic change requests:  You must file Form 3115 under the non-automatic change procedures during the tax year for which the change is requested.

[KittyM]

Sorry.  I know it stinks.  You CAN amend your 2015, 2016 and 2017 returns to claim the depreciation you should have claimed during those years.  The time to file an amendment for refund for 2015 expires April 15, 2019.

[ikenacornett]

Does selling the rental property mean I cannot use automatic change procedures (part I question 3)

[KittyM]

It's always worth a try, but it would have to be for 2018.

[ikenacornett]

DCN 107 allows for automatic when property has been disposed of.