form 3115 more than one business

[TaxprepP]

I have a MFJ client where he has a farm and she a schedule c business. Both require depreciation adjustments. Will two 3115 forms be required, one for each business as each have different business codes (one for the farm and one for schedule c business) or one 3115 for the tax return?

[TaxprepP]

I could really use some insight on this one. A MFJ return, two business, farm (sch F) with one business code and sch C a different business code. Both businesses have thier own assets. Now due to new regs both have depreciation adjsutments. File one form 3115 for the tax return or file a form 3115 for each business?

[Maribeth]

I don't know the answer to your question. At first I thought "well, one taxpayer unit, file one 3115". Then I thought "well, one sch C and one sch F, so two 481(a) adjustments, file two 3115's".

But how about this? File one 3115, show the calculations for the F and for the C. Combine both of those adjustments and you have the total 481(a) adjustment for whatever line it goes onto on the 3115. Then put the appropriate adjustment on F & C on the return.

That should work.

[TaxprepP]

I don't know the answer to your question. At first I thought "well, one taxpayer unit, file one 3115". Then I thought "well, one sch C and one sch F, so two 481(a) adjustments, file two 3115's".

But how about this? File one 3115, show the calculations for the F and for the C. Combine both of those adjustments and you have the total 481(a) adjustment for whatever line it goes onto on the 3115. Then put the appropriate adjustment on F & C on the return.

That should work.

I was thinking may require two forms as the "Principal business activity code number" has to one page one of the form. Two codes on one form may confusing? We all know sometimes there isn't intelligent life at the IRS.

[Maribeth]

You could put a "stment" on the code block, if your software will allow, or just manually enter it. Then use the codes on your supporting schedule detailing the changes.

I really think you would be okay by filing only one 3115.

[TaxprepP]

You could put a "stment" on the code block, if your software will allow, or just manually enter it. Then use the codes on your supporting schedule detailing the changes.

I really think you would be okay by filing only one 3115.

If the IRS will accept, that Sounds better. I have been doing most of the 3115 forms partally from our system and finish manually anyways. I read in the instructions that for a MFJ return both names and SSN are to be on the form. The software I am using only does the main taxpayer.

Thanks.