topic Re: Do I need to revise current year 4562 numbers after 481(a) adjustment in Investors & landlords

Do I need to revise current year 4562 numbers after 481(a) adjustment

user17592114376 — Tue, 30 Sep 2025 06:02:03 GMT

I have done a cost seg study in 2024 for a rental placed into service in 2017. The cost seg company also prepared the form 3115 and supporting statements so I can just put the 481(a) number directly onto schedule E.

I m filing 2024 return and my question is if I need to revise the 4562 schedule for 2024 or I do that for 2025 onward?

So if I have depreciated 100k under 27.5 year rule and the 481(a) added 200k, on the step (for 2024) where it asks for prior deprec, do I put 100k or 300k?

Re: Do I need to revise current year 4562 numbers after 481(a) adjustment

AmeliesUncle — Tue, 30 Sep 2025 17:24:49 GMT

Yes, you need to change all of your assets to match the Cost Seg on your 2024 return.

You need to add EACH of the 'new' (separated) assets. It will likely be a long list to match your Cost Seg.

You also need to modify/correct the existing asset (such as the building) that are changing. For the previous asset (the building) you will change the Basis/Cost to reflect the new amount that Cost Seg shows (a smaller amount, because the other assets were removed from it) and you will change the "Prior Depreciation" to match the Cost Seg (a smaller amount, because the Basis/Cost is smaller). It will not be either $100k or $300k.

Re: Do I need to revise current year 4562 numbers after 481(a) adjustment

user17592114376 — Tue, 07 Oct 2025 05:37:13 GMT

Thank you so much. I have followed the steps and got a few more questions.

a), it is a long list to add (100+ items). Do you know if in general it is ok just to add the aggregate for each category? One for Personal Properties (5 years), one for land improvements (15 years) and the rest?

b), for each of the asset, on the screen to confirm your prior depreciation, I assume I would include this year as well (as part of the 481a adjustment)? So essentially for 5 years and 15 years items, I put the entire depreciable values there (taking the bonus depreciation) so there won't be further depreciation this year (2024) outside of 481a adjustment.