Hi, I forgot to depreciate my rental property in 2008, 2009, and 2010. Should I amend using 1040X or should I file form 3115? This is the first time I have to do this. I really appreciate any help thriugh this process. Thanks,
You don't need to file form 3115. You need to amend the previous year.
If the depreciation in the previous year does not effect much on your taxes, then may be leave it alone because of all amendment cost--this is just a lazy openion and not an answer as accountant. of course best is to amend the previous years.
if this is the answer pl click solved.
Thank you for your reply. Somehow form 3115 seems more straight forward to me. I went ahead and fill out the form 3115. Is that OK? If I either file form 3115 or file 1040X, do I need to send that in first and wait for the reply from IRS before doing this year tax or should I send them both in at the same time? Thank you.
Form 3115 is used to change in either on overall method of accounting or the accounting treatment of any item.
You need 1040x. you can send all at once with this year. make sure to calculate your depreciation accuratley for all years. you need to talk to an accountant/cpa to do your taxes. Your tax person can help you for this.
Thank you for your help. I will do the 1040X. However, I still don't understand why I cannot use form 3115. It has a section that deals with depreciation. Is it true that I can use this form to change the treatment of my rental property from a nondepreciable property to a depreciable property? Thanks
