Adjust depreciation method and number - Cost segregation study

[sunnyside8989]

I recently conducted a cost segregation study in 2024 for a property I purchased in 2022. For the first two years of tax filings, I used the straight-line depreciation method. With this new cost segregation study, I need to change my accounting method for depreciation and adjust the new depreciation for the 2024 tax year. Given that I have already recorded prior straight-line depreciation in TurboTax, where can I make this adjustment and change my accounting method? Last year depreciation I used form 4562 in schedule E, where can I file new depreciation method to reflect cost segregation study number in 2024 tax year

[RobertB4444]

In order to change your depreciation method you would need to file form 3115 and attach it to your return.  In TurboTax only the desktop version of the program supports form 3115 so you will need to use that version of the program.

In order to take bonus depreciation or section 179 deductions you will need to amend the returns for 2022 and 23 and take the extra deductions in those years.  If you do that then you have no need to file form 3115.

Here is a discussion on this topic.

Here is more info on form 3115.

@sunnyside8989