Can I file form 3115 for 2023 instead of 2024?

[Obaf]

Hello,

It turns out that I didn't take depreciation (or didn't take the correct amount) for a rental property purchased and placed into service sometime in 2018.

I understand I need to file form 3115. My income this year is much higher than last year.

Should I or can I

a) File form 3115 and amend last year's (2023) returns to bring my AGI to lower than 150K

b) File form 3115 and attach it to this year's tax (2024) return

[MindyB]

Choice B. You cannot prepare a 3115 for 2023.  It is too late.  But, if your income was lower in 2023, it would probably not be advantageous to file a 3115 for a favorable change. Instead, generally, you will want to take more deductions in years of higher income, when possible.  

Form 3115 is due by the due date of the return that the accounting method change is being made for, including the extension.  

[Obaf]

Thanks @MindyB  for your response.

>> But, if your income was lower in 2023, it would probably not be advantageous to file a 3115 for a favorable change. 

That makes sense. The reason I considered taking it in 2023 was because it would lower my AGI to below 150K which would then make me qualified for the 7,500 EV rebate. But as you said, filing it against 2023 isn't possible.

[AmeliesUncle]

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@Obaf wrote:

It turns out that I didn't take depreciation (or didn't take the correct amount)

Which one?  Didn't take?  Or didn't take the correct amount?

Please give more details, because it is a BIG difference in what needs to be done.

[Obaf]

@AmeliesUncle 

Still going through my previous returns so not totally sure. If you can, can you provide responses to the 2 scenarios?