Form 3115 - "Address" and "Tax Year of Change" - Verify default values from TurboTax Desktop

[anxsa]

Hi All,

  I know TT Desktop is smart 🙂 however I only want to double check on below 2 (probably simple) questions because the "form 3115" is not automatically supported by TT in step by step mode and like other questions on this form, a manual override might be needed.

 Question 1 -  TT Desktop is currently automatically taking my current address, which is not my rental property address, in the Address section. Is it correct?

Question 2 - Since I am submitting 3115 (using DCN# 7), what should be the "Tax Year of change begins"? TT Desktop has it automatically as 04/01/2024. Should this be 2023 since that's the year we are requesting the change in accounting methods? If it's 2023, what is the month and date?

[JamesG1]

If the IRS form 3115 Application for Change in Accounting Method is requesting a change for your personal tax return which includes the IRS Schedule E for a residential rental, you will report the name of the filer taxpayer and the home address reported on the IRS form 1040 income tax return.

If the Part IV Section 481(a) Adjustment  will be reported on your current year IRS form 1040 income tax return, then the date requesting the change in accounting methods is December 31, 2023.

The Instructions for IRS form 3115 may be found here.

If you purchased Live Tax Advice, you may want to contact that service for assistance.

[anxsa]

Thanks @JamesG1 ! This was helpful. To make sure I get it right, I am summarizing based on my understanding. Please confirm if I got it right.

Since I am submitting my personal Tax return for FY23 and this time including  Form 3115 (to change accounting method), the address on 3115 should be the same as on 1040 and not the one on Schedule E (Use current address and not residential address).

Since the form 3115 is submitted for FY23, the date of change should be 12/31/2023.

[LeticiaF1 · Accepted solution]

Yes, the address on the Form 3115 should be your address, the one on the Form 1040, not the one of the rental property.  

Yes, the date of change should be 12/31/2023.

Feel free to reach back if you have additional questions.  

@anxsa 

[anxsa]

Thanks @LeticiaF1 !