3115 for betterments etc.

[Gretel]

Here is my understanding of a general change of accounting methods while complying with the new regulations (I am not talking about safe harbors or special election):

f.e. If a client ever has treated a repair that now is deemed a betterment etc., he has a change in accounting methods. On the other hand, if all repairs made in previous years were truly repairs (also in the meaning of the new law) no change in accounting methods occurs.

Agree, disagree?

[Lion]

Agree. And, the classic extensive roof "repair" that the IRS cowed us into calling a "replacement" and capitalizing, that now might actually be a "repair" and not capitalized: Form 3115 to take into expense the rest of the depreciation as an accounting method change. If not and if audited, can no longer File 3115 and would lose the rest of the depreciation (unless it was within the last three open years so could be amended).

We have to look at our clients' depreciation schedules AND ALSO at their materials and supplies accounts to see what worked in prior years but does not comply with the new regs BEFORE filing 2014 tax returns. Last chance.