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Returning Member
posted Sep 20, 2024 10:43:00 AM

Form 3115 to fix overclaimed deprectation - need input on the steps followed

hi all, if you have experience with form 3115 would appreicate your help.
This is in context to a rental property which we started renting from last two years and since than the cost of property and land was written more than what it was ( current price was used vs what I bought it for). . This year while doing my own taxes I figured out the cost is incorrect so i reaced out to the tax preparer who did last two years and he helped prepare a form 3115. I am doing the rest of taxes myself for 2023 through turbo tax desktop version.

Anythign I am missing or need to do differently or update in tax prep software?

i have done the following:

  1. I added the overclaimed deprecation amount in misc expenses.

  2. I wil be e-filing while sending 8453, the form 3115, 3115 statement via mail.

  3. I override the turbo tax deprecation field for that rental property and the value i put in is the difference of accumulated deprectation till 2022 and overclaimed deprecation. My tax refund reduced by ~50.

Thanks,

Aysha

0 8 31008
1 Best answer
Level 15
Sep 20, 2024 1:40:15 PM

Using an incorrect Basis is not a method of accounting.   I'm sorry to tell you this, but Form 3115 does not apply.

 

It can only be corrected by amending.

8 Replies
Level 15
Sep 20, 2024 11:06:38 AM

Returning Member
Sep 20, 2024 11:07:49 AM

Yes

Level 15
Sep 20, 2024 11:08:09 AM

Level 15
Sep 20, 2024 11:11:42 AM

Returning Member
Sep 20, 2024 11:22:33 AM

What you said makes sense. It shoud be added in rental income than? 

Level 15
Sep 20, 2024 11:27:27 AM

Level 15
Sep 20, 2024 1:40:15 PM

Using an incorrect Basis is not a method of accounting.   I'm sorry to tell you this, but Form 3115 does not apply.

 

It can only be corrected by amending.

Level 15
Sep 20, 2024 1:56:36 PM