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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,
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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.
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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.
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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).
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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.
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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.
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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.
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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.
Also keep in mind the date of replies, as tax law changes.
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Premier and Form 3115
Can you please verify? Critter said you need to amend prior years, while you’re stating that form 3115 section 481(a) will handle that. So no need to amend return for previous years will be necessary.
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Premier and Form 3115
Hi Joevu,
Im in the same situation, did everything work out? Did you need to amend prior years as well or was the form 3115 section 481(a) good enough.
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Premier and Form 3115
If your facts are the same as the original question, then no need to amend.
Complete form 3115 and the Section 481(a) will handle the adjustment necessary.
TT does not provide guidance for this form and the return will need to be paper filed.
Send the return certified mail return receipt requested to verify your mailing. This is very important, especially now as the IRS has millions of unprocessed returns.
Also keep in mind the date of replies, as tax law changes.
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