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CADHue
Level 1

How do I show the cost segregation study using IRS Form 3115 on TurboTax desktop?

Hi All,

 

I was told "TurboTax online does not allow the capability to override any certain transactions, ie; depreciation. You will have to used TurboTax Desktop which had a "Forms" mode where you can override current depreciation." I see Form 3115 and I've been able to complete it but I don't see in TurboTax desktop the Federal Supporting Statements form or the Depreciation Detail Listing form. I see a Depreciation Report but I can't modify it. Please advise. Thanks, Cedric

3 Replies
AmeliesUncle
Level 12

How do I show the cost segregation study using IRS Form 3115 on TurboTax desktop?

Don't override anything.

 

Enter the assets according to the proper depreciation schedules (the results of the Cost Seg), and using the proper "prior depreciation" that would have been used if you had been doing that all the time (if you leave the "prior depreciation" BLANK, the program will assume the prior years were correct).  That will give you the proper current-year depreciation.

 

As for Form 3115, the calculated results of that is entered as an 'other' or 'misc' deduction on the form that reports that activity.

CADHue
Level 1

How do I show the cost segregation study using IRS Form 3115 on TurboTax desktop?

Okay thanks for letting me know @AmeliesUncle. To make sure I have this correct.  Instead of adding a hypothetical asset of house + land purchase for $300K, I instead add a 39 year asset + land for $200K, a 7 year asset for $50K, and a 5 year asset for $50K, correct?

 

  

AmeliesUncle
Level 12

How do I show the cost segregation study using IRS Form 3115 on TurboTax desktop?

Yes, you enter the assets as they are supposed to be depreciated.

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