Cost segregation study - 481a adjustment file

[sunnyside8989]

Hi, 

I purchased a rental property in 2022 and did cost segregation study for the property in 2024. I need to catch up my depreciation. Where should I put my 481a adjustment into schedule E or form 4562? My 481a adjustment on cost segregation study is around -$70k ish.

Thanks

[AmyC]

You have one option at this point since you purchased in 2022. You must file form 3115 rather than amending.

 Change your numbers, add the 481a adjustment and file Form 3115. You have 2 options:

• You can use online and let an expert handle this.
• You can use the desktop version to file form 3115

Enter the missed depreciation as a miscellaneous expense and it will show under Other Expenses. 

Side note, you should file  Form 3115 with your return to avoid the extra fee of filing it separately. See  About Form 3115, Application for Change in Accounting.