form 3115 sec 1.167(a)-11

[GTS1101]

This may be a stupid question. I am doing a 3115 because the depreciation life got changed on a few rental properties and the wrong depreciation was claimed. Properties were placed in service in 2003 and later and whoever did their taxes changed from 27.5 years to 39 years for 3 years in a row. On the form the question asks "Is depreciation for the property determined under Regulations section 1.167(a)-11 (CLADR)?" I looked at the reg and cannot determine if residental rental is under this 1.167(a)-11. They never lived in any of the properties. Always have been residental rental. Anyone can help. This form is very time consuming and I don't like it.

Thanks for your help!
GTS1101

[solomon]

1250 property is mentioned in (b) of that Reg. Don't understand CLADR - was that not a method used prior to 1981? If these rentals were placed in service in 2003, MACRS was used.

[solomon]

See Rev. Proc. 2004-11 and 2007-16. The taxpayer could just wait and take care of this in the year of disposition.

[veritas]

This is a new one

The taxpayer originally adopted the correct method and life. Then some accountant changed the class life for more than two years. So I guess an improper method of accounting was adopted.


I doesn't seem any revenue procedure addresses this problem..

So does the taxpayer use the correct life going forward or use the improper method and correct it after it is disposed?