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:
I added the overclaimed deprecation amount in misc expenses.
I wil be e-filing while sending 8453, the form 3115, 3115 statement via mail.
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
What you said makes sense. It shoud be added in rental income than?
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.