How to claim catch up depreciation on a property that has never been depreciated since purchase?

[Ethereal]

Perfect, thanks!

[JPRIMAS001]

In some cases will the deprecation be I allowed and still carry forward?

[sathish23]

Do you have instructions on how to fill form 3115. I have been trying to find tax professionals and enrolled agents but all of them are asking me to amend my 2017 and 2018. No one is sure on form 3115. 

[Carl]

Are you a tax professional? If not, the 3115 is not simple by any stretch of the imagination. You should seek professional help on this. The cost of professional help is a pittance in comparison to the fines and penalties you will be assessed for both not taking the depreciation as required, and completing the 3115 incorrectly. If your state also taxes personal income, then you can double those fines and penalties.

[sathish23]

I am not a tax professional but I am not finding anyone who is aware and familiar with form 3115. I must have talked to more than 10 tax professionals including enrolled agents and everyone is suggesting to amend 2107 and 2018. They are also not aware on the details of 3115 as they had not done it earlier. So need help finding a tax professional who is knowledgeable in this. I live in Florida by the way. 

[Critter]

It is not a commonly used  form ... if you only have to go back to 2017 you could just amend 2017 & 2018 then do the 2019 return correctly ... it is not the correct way but the IRS will probably allow it.   

Or you could get the form & instructions from the IRS and try it yourself.   

OR you can call around to local pros and ask them if they use the DRAKE program as that form is part of that program so it makes it easier to complete.  

[Ethereal]

You can use the IRS instructions, it's time consuming and complex but totally doable by the average Joe. The hardest part is identifying which conditionals apply to your particular situation, as the wording is not user friendly.

[JPRIMAS001]

I hired someone who claimed to be experienced with form 3115 but I reviewed it and it still looked wrong as it did not take the total deprecation from last years.  

[sathish23]

Thanks for the reply. If I go with amending 2017 and 2018, should I wait until the amended return is accepted by IRS before I file 2019 taxes?

I was thinking if IRS wont allow amending 2017 and 2018, then I could find someone who can do form 3115.

Finding it really hard to find someone who can do form 3115. I will keep trying in the meantime.

[Critter]

You do not need to wait the 6 months for the IRS to process the amended returns before you file 2019. 

[Ethereal]

In case it saves anyone some time, here's my filled 3115, and the attachment:

f3115 

attachment 

This is for a case in which I didn't depreciate the main building structure upon placement into service, and obviously does not apply to all situations.

[941_to_958]

Extremely Helpful!!!   Thank you!

[elsaJ]

Very helpful 🙂 Thanks so much!

[nexxn958]

After adding the rental asset in Turbo Tax, how do I answer the step "Confirm your prior depreciation" step ("Amount of depreciation taken in prior years (not including any section 179 deduction or first year special depreciation allowance deduction) ")? Should the amount entered be $0 (since no depreciation was taken in prior year's returns) or should it be the 481(a) adjustment amount per Form 3115 (accumulated depreciation omitted)?

[Tomek]

The best help ever ! Mega-thanks ! Ethereal   Level 2

‎for May 29, 2020 9:36 AM response