Thanks. I was able to find someone to correctly handle my taxes and the extention will be filed if necessary.
One another note, this person - who has 31 years of experience dealing with my type of situation indicated that the Form 3115 should not be filed. I've seen all sorts of articles and been given advice here from experts about using the form to fix the accounting method error and claim the prior years of depreciation. But I was advised that this is not correct. I'd like to find the best way to explain the 481(a) adjustment mentioned above. I suspect that my tax CPA may not understanding what I'm asking.
I considered the above and took at look at the Form's instructions. Does this apply to my situation as having sold the rental property in December 2021 as explained above?
"Depreciation or amortization (impermissible to permissible) (sections 56, 167, 168, 197, 280F, 1400I, 1400L, 1400N, and former section 168)—from an impermissible method to a permissible method for changes allowed under Regulations section 1.446-1(e)(2)(ii)(d), and for depreciable property owned at the beginning of the year of change. Complete Schedule E of Form 3115. An applicant changing its method of accounting for depreciation because of a change described in designated automatic accounting method change number 10 (sale or lease transactions) must file Form 3115 according to the designated change number 10. Additionally, a qualified small taxpayer qualifies for a reduced Form 3115 filing requirement. See section 6.01 of Rev. Proc. 2018-31."
When I looked up the 481(a) adjustment, I see this:
"Under current IRS rules, the calculation of depreciation or repair deductions for prior years can be recomputed, and a one-time catch-up adjustment (i.e. IRC §481(a) adjustment) is allowed in the current tax year for missed deductions. The adjustment is the difference between depreciation or repair deductions claimed versus depreciation or repair deductions that could have been claimed by the end of the prior tax year. This adjustment is reported on IRS Form 3115 and does not require amending any prior year tax returns."
Does this actually save me any $$ in taxes, or am I just correcting something to be technically correct that doesn't really help my bottom line? If this will help me, I'd like to pass on the above. At this point, I really want to get this filed without complicating things if the CPA has never done this. But if this will help me,
