Deductions & credits

You need to file form 3115 which you can do in the desktop version of TurboTax.

In the desktop version of TurboTax, use these menu options to find form 3115:

• View
• Forms
• Open Form
• Type “3115” in the query box
• Select “Form 3115 Change in Accounting Method” and start with page 1 3

Complete these lines and boxes on form 3115:

• Tax year of change: enter current year
• Type of applicant: choose what type of entity you are
• Type of accounting method change: Depreciation or amortization
• Part I, question 1(a) DCN code 7
• Answer questions 2 and 3 in Part I
• Answer questions in Parts II and III
• Answer “NO” to Part IV question 25
• Enter the depreciation adjustment amount on line 26
• Answer “Yes” to line 27 and check the appropriate de minimis election box entry
• Answer question 28
• Skip to Page 8, Schedule E “Change in Depreciation or Amortization” and complete that section

Attach form 3115 to the tax return for the year of the change, along with a statement describing the property subject to the change. Include the year the property was placed in service and the property’s use in the applicant’s trade, business or income-producing activity.

Review questions 5 – 7 for additional disclosure requirements.  Mail a copy of form 3115 and the disclosure statement to the address in the instructions to form 3115.