I’m filing my 2025 return and need to attach Form 3115 for an automatic change in accounting method (late depreciation on a residential rental property).
Details of my situation:
- I did not claim depreciation in 2023 and 2024.
- My CPA prepared Form 3115 to change from “no depreciation” to standard 27.5-year residential rental (S/L, mid-month).
- The total Section 481(a) adjustment is about $40,000 (2023 + 2024 missed depreciation).
- The CPA already faxed a signed copy of Form 3115 to the IRS National Office (as required for automatic changes).
- I was told that a second copy must also be attached to my 2025 tax return when I file in Spring 2026.
I have TurboTax Home and Business and I would like to e-file which I have always done.
My understanding is:
- I cannot just upload the signed PDF of Form 3115 into TurboTax.
- I should recreate Form 3115 inside TurboTax in Forms Mode so that it transmits with the e-file.
- I should enter $0 for “prior depreciation claimed” (since I actually claimed none).
- I should enter the full ~$40K Section 481(a) adjustment as a separate expense on Schedule E in 2025.
Is that the correct approach?
