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aamedia
Returning Member

Filing an extension for tax year 2021 - best way to estimate payment when you need to file a 3115 for sec 481 adjustment on rental property

I sold rental property in December 2021 after not having claimed depreciation for tax years 2012 through 2020 out of pure ignorance as I'm not a real estate professional. Turbo Tax never found errors, so I never questioned it. I now will need to file Form 3115 for sec 481 adjustment as advised by a number of experts here. I'll need to file an extension as I cannot do this myself and use Turobtax Live to work with a professional.

 

For me to file the extension, I need to pay what I'll probably owe. Using the TurboTax desktop application, what is the best way to get a good estimate with my circumstances? Should I just go through the whole thing without using the 3115 and use that number, or is there a way to get an idea of how to get a good estimate of how much the adjustment might be?

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2 Replies

Filing an extension for tax year 2021 - best way to estimate payment when you need to file a 3115 for sec 481 adjustment on rental property

what is your profit without depreciation?

use 24% of that.

If that is unreasonable, be aware,

You don’t need to file Form 4868 if you pay all or part of your estimated income tax due and **indicate that the payment is for an extension** using IRS Direct Pay, the Electronic Federal Tax Payment System, or using a credit or debit card. Your extension is then automatically granted and you will receive a confirmation number for your records.

Any amount will do.

You only have to achieve 80% of your final tax due  with request for extension to be in good graces with the IRS.

 

aamedia
Returning Member

Filing an extension for tax year 2021 - best way to estimate payment when you need to file a 3115 for sec 481 adjustment on rental property

Thanks for the response.

 

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