If I fill out a Form 3115 in Turbo Tax, does Turbo Tax bring the Form 3115 amounts into the tax return to compute the tax?

[tpatrickluna]

I understand the Form 3115 is available in the Forms section of TurboTax. I also understand TurboTax will not e-file a return with a Form 3115 in this version (Home & Business on CD for Mac). But, I want to know whether TurboTax takes the amounts from the Form 3115 (after I have filled it out) and computes the tax, so that I can simply print and sign the return (including the Form 3115) from TurboTax and mail it in.  

[MichaelL1]

You will have to compete in the Forms mode and TurboTax does not do the computations on the 3115.

https://ttlc.intuit.com/replies/6807065

[NicoleArmstrong]

Just a side note that, because it won't automatically compute the number, you can go in and right-click and "override" the Depreciation for this year to include the additional amount. That way the correct total will move forward into future years.

[AmeliesUncle]

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@NicoleArmstrong wrote:

Just a side note that, because it won't automatically compute the number, you can go in and right-click and "override" the Depreciation for this year to include the additional amount. That way the correct total will move forward into future years.

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No, that is not how it is done.

You enter the adjustment from 3115 as a "481(a) Adjustment".  DON'T add it to the current depreciation.  However, your "prior depreciation" should have already included that amount because that needs to be what you SHOULD have taken.

[NicoleArmstrong]

Where is the 481(a) adjustment section in TT?  I never found it.  And does that automatically update the Total Depr to move forward correctly into the future?

[Anonymous]

Hi, AmeliesUncle, we do this on a LLC/1065 return via Turbo Tax business. Where specifically do we manually enter the total amount of our 481(a) Adjustment to show depreciation that we "missed" taking on the rental properties in prior years?     Is it entered somewhere on the depreciation entries,  or is it just a manual 'other income/loss' item in the general business expenses.  (I want to make sure it gets the right characterization so it is properly handled on K1's that flow through to personal returns and any future-year carryovers in the resulting losses).  Thank you. 

[WendyN2]

You should claim catch-up depreciation on this year’s return. Catch-up depreciation is an adjustment to correct improper depreciation. This occurs when:

• You didn’t claim depreciation in prior years on a depreciable asset.
• You claimed more or less than the allowable depreciation on a depreciable asset.

Claiming catch-up depreciation is a change in the accounting method. You’re changing from a depreciation method that’s not allowed to one that’s allowed.

Instead of filing amended returns, you must correct this on this year’s return. Follow the steps outlined in the instructions to Form 3115: Application for Change in Accounting Method.

IRS - About Form 3115

[RP777]

I don't a response to an earlier question about where to enter 481(a) adjustment (from Form 3115) on schedule E.  However, I have seen in other posts that it should be added to 'Other Expenses'.    

 - I added it to the 'Any Miscellaneous Expenses' under the 'Rental Income'.  Would this be ok?

Thanks

[DianeW777]

Yes, that's exactly where it should go. Other expenses allows you to enter the description '481(a) adjustment-3115' so it's very clear what the expense is from and that it relates to your Form 3115.

@RP777

[RP777]

Thank you Diane for a quick response!

[nanosuna1977]

Hi there.  I was looking at your response.  In order to add the missed depreciation, you said you added it the Any other Miscellaneous Expenses.  Im in TT Desktop Premier.  I dont see an option to pick the 481 description as Diana mention in her response.  Can you clarify this for me please?  thanks in advance for your help.

[tagteam]

Perhaps @AmeliesUncle can respond to @nanosuna1977, but this adjustment should be entered on Line 24z of Schedule 1.

However, there is simply no way to enter a figure on Line 24z of Schedule 1 in TurboTax. Even in Forms Mode, although a description and amount can be entered, the figure will not calculate (even an override does not work).

See https://ttlc.intuit.com/community/business-taxes/discussion/how-do-i-enter-something-on-schedule-i-l...

[AmeliesUncle]

It should generally be entered on whatever form it belongs.  If it is a rental, it goes as a rental expense.  If it is a self-employed business, it goes on Schedule C.  If it is from a Home Office, it goes on Form 8829.  

On whichever form it goes, it generally is entered as an "other" deduction on the Schedule or Form.

[tagteam]

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@AmeliesUncle wrote:

On whichever form it goes, it generally is entered as an "other" deduction on the Schedule or Form.

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On a line where a description can be added, I presume.

[nanosuna1977]

thank you