Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Joevu
Returning Member

Premier and Form 3115

I failed to take depreciation for 8 years.  If I can fill out the form 3115, will TT Premier guide me to finish up the change in depreciation?

 

Thanks,

7 Replies
Critter
Level 15

Premier and Form 3115

NO ... this form is NOT in the TT program AND you should NOT try to complete it yourself ... seek local professional assistance for this year's return to get this error fixed correctly.  

Joevu
Returning Member

Premier and Form 3115

I have been using TT for 15+ yrs and very comfortable with it.  Let's say I go to a CPA for this tax year 2019. I can go back using TT after that?  It should be the same number for the depreciation.

Critter
Level 15

Premier and Form 3115

Of course you can return ... for just 2019 you need professional help since there are some unusual situations the DIY program is just not set up to handle.  And for the asset you will need to enter it in the program from the 2019 depreciation worksheet ...make SURE to get ALL the worksheets from the CPA (unethical ones  have a tendency to keep the "work product" to themselves to get you to come back).  

Carl
Level 15

Premier and Form 3115

Let's say I go to a CPA for this tax year 2019. I can go back using TT after that?

Sure you can. But make *ABSOLUTELY CERTAIN* that you get a printout of the "complete" tax return *AND* all worksheets and calculation forms from the CPA. *you* *WILL* *need* *them*. I guarantee it.

 

It should be the same number for the depreciation.

 

No, it will *NOT* be the same number for depreciation. Won't even be close. Again, I can guarantee it with 100% certainty. You may or may not be paying back-taxes (I think not) but you will be paying some penalties and fines for not having taken the depreciation when you should have. So there's no way possible the depreciation amount for 2019 will be anywhere close to what it will be for 2020.

Since you can amend a tax return for three years back, a CPA will probably amend the 2016 tax return with the 3115 to "correct" your mistake. Then amend the 2017 and 2018 returns to correctly take the depreciation. Then (and only then) would the amount of depreciation for 2019 be the same (or within a few dollars) of the 2018 depreciation.

You need to get on this yesterday if not sooner. Since you can only amend a tax return 3 years after you filed it, assuming you waited until the last minute to file your 2016, your deadline is approaching. Keep in mind too that already CPA appointments are filling up fast as I type this.

Joevu
Returning Member

Premier and Form 3115

I did not mean the same as the one I am using in the same year with form 3115.  This should be what the yearly depreciation (basis/27.5).  Correct?  Worksheet should tell me that.  I will have to ask if the CPA provides me with complete worksheet.

Critter
Level 15

Premier and Form 3115

The CPA should give you a depreciation worksheet that will have the info you need to enter into the program going forward.   It is not simply cost/27.5 years. 

Rick19744
Level 11

Premier and Form 3115

I also recommend that you consult with a tax professional.  

What has occurred here is that you have adopted an incorrect method of accounting; not taking the depreciation and now wanting to correct it.

This can be done as you noted on form 3115.  You will correct / adjust for all depreciation not taken on this form.  You will not amend any returns as the form 3115 will compute a 481(a) adjustment for all years.  This is an automatic change in accounting method and will be included with your 2019 tax return.

 

*A reminder that posts in a forum such as this do not constitute tax advice.*
Dynamic AdsDynamic Ads
Privacy Settings
v