Great info in this thread, but see on question that was not answered.
Given that a form 3115 is completed and a section 481(a) adjustment has been calculated. For example, $40,000
Also, given that the hypothetical 40K is entered as an "Other" expense on line 19 of Schedule E (form 1040).
Should the $40k amount be deducted from the taxable income for the current tax year?
What if it exceeds the amount of rental income for that year?
In my current tax return, prepared in TurboTax, the rental income (1040:Schedule E:Line 26)is simply brought to "0".
The full amount of the catch-up depreciation is now "claimed" but will never be fully deducted from my income.
Is this correct?
Of so, then perhaps simply amending the 3 prior years of income would have been more productive 😕
