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Investors & landlords
In accordance with the instructions for form 3115 (page 9 Part IV), the general rule is that you take the full Section 481(a) adjustment into account in the year of change when there is a net negative adjustment.
There could be some exceptions, but not for this specific automatic method change.
So while you may not experience the benefit in the current year, it is the correct adjustment period and will also carry over.
So, in conclusion, the answer to the question on the form should be "yes".
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
March 4, 2024
4:43 AM