Form 3115 Part II, Items 14 to 16 and Part IV Explanations

[ennosys]

I am correcting the Schedule E accounting error and need to complete Form 3115.  It requires you to separately write an explanation and calculations.  I understand I have to submit the form 3115 and supporting documents separately to the Ogden, UT office, but don't I also have to submit it along with the 1040?  If so, how can I upload the documents for me to e-file?

[DianeW777]

Yes you must submit it with your tax return and it must be mailed. See the information below.

 Form 3115 Instruction: By including this with the current year tax return, you can complete everything on the 2024 tax return.

• Adopt a change in accounting method: This option allows you to go back as far as you need. Make the adjustment on your current year tax return to expense the missing depreciation.
  • Why am I adopting a change in accounting method? Not claiming depreciation in two or more years indicates that you've chosen an accounting method without depreciation. In this case, you must now elect to change your accounting method to include depreciation.
• You must use the TurboTax Desktop ‌ to complete this form. TurboTax doesn't help you with this form. And your return must be mailed because this form is not supported through e-file.

Keep in mind that even if you prepare the form 3115 in TurboTax, you will need to manually include the Section 481(a) adjustment to your return under miscellaneous expense.

[Rick19744]

In addition to @DianeW777 response:

• While form 3115 is not supported in TT, you can include the adjustment amount in your tax return and still efile your tax return.
• You would then need to complete form 8453, check the form 3115 box and mail both of these forms to the address on the instructions.  If you do this, make sure to send the envelope certified mail.
• Not necessarily advocating this method, for the simple fact that the IRS staff is down about 25% and just not sure of all the logistics given the reduction in staffing.
• If you decide to mail both the return with the form 3115, I also recommend you send this envelope certified mail as well.