All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Valued Pioneer
Posts: 4
Registered: ‎02-11-2018
Accepted Solution

3115 form

I just found out I needed to depreciate my rental property but didn't since Jan 2010.  Heard form 3115 is difficult to file.  can anyone explain it to me how to fill it our?  Do I file it with my 2017 tax or before?  Do I have to wait til I get a response from IRS before filing 2017?  I have been using H&R tax software for years and disappointment it didn't have me depreciate my property.  Is the form in the software?

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Associate (Neighbor)
Posts: 115
Registered: ‎07-22-2014

Re: 3115 form

Hello, sskt, and welcome to the community.

 

Unfortunately, I have some bad news for you.  One of the few things the IRS will not accept on an amended return is claiming depreciation that was not on the original return.  They will accept amending depreciation in specific instances - mathematical errors, change in usage of the asset, incorrect date for the asset being placed in service, claiming the "special depreciation" allowance, and not adopting an accounting method.  Since the error was not claiming the allowable depreciation, and not one of the correctable errors, I'm afraid the IRS will deny your amendment.

 

I can't answer your question regarding whether the depreciation forms are in the software, since I'm not familiar with it - I am somewhat familiar with the online version (and, obviously, the in-office platform). 

 

Hope that helps a little - even though the answer isn't going to be a happy one.

 

-kurt

Valued Pioneer
Posts: 4
Registered: ‎02-11-2018

Re: 3115 form

Thank you for replying.  Is there anything else I can do?

Moderator
Posts: 58
Registered: ‎09-16-2014

Re: 3115 form

SsKT,

 

Hello! Welcome to the Community.

 

Unfortunately Form 3115 the catch up depreciation form is not available in the H&R Block online or software products. You are correct it is a doozy of a form to file! If you want to efile 2017 on your own, you can continue claiming the rental property without depreciating it. You can visit an H&R Block tax professional to attach Form 3115 to your amended 2017 tax return if you get it in before October 15th, 2018. That will catch up all your unclaimed depreciation. After that date, it won't be considered timely for 2017 and you'd have to wait to next year's taxes to catch up your depreciation. Then you can continue to depreciate the property in later years and beyond if you keep renting it.

 

Let us know if you need more guidance,

 

Lynn

Valued Pioneer
Posts: 4
Registered: ‎02-11-2018

Re: 3115 form

I didn't file 2017 yet, thought I had to send 3115 first.  Also why can't I start depreciating it now? 

Moderator
Posts: 58
Registered: ‎09-16-2014

Re: 3115 form

Form 3115 has to be attached to a timely filed income tax return, or within 6 months if a timely filed extension or tax return was filed by April. Not claiming depreciation when you should have is "adopting an improper method" which can only be fixed by asking the IRS for permission. The way you ask permission is to file Form 3115, which in this case would be an automatic acceptance of the request to change, so you can catch up all the missed depreciation on the tax return with Form 3115. 

 

Thanks!

-Lynn 

Valued Pioneer
Posts: 4
Registered: ‎02-11-2018

Re: 3115 form

What would you put down for dcn o part 1? I was told 8 but also I read online said I should put 7 because um claiming the whole missed amount on my 2017 return.