Form 3115 - Qs

[fredmod]

Never filed this form before. A friend who has always done his own taxes has rental property and has never claimed depreciation. Form 3115 seems to be the way to correct this but the question is:
Can you file this year's taxes and claim depreciation before filing form 3115?
If not, can you file form 3115 (but before the IRS response) and then file this year's taxes and claim depreciation?
Or, do you file form 3115 and wait for the IRS response before making the change to claiming depreciation on your 1040 for this year or next?
Thank you!

[TaxGuyBill]

File Form 3115 WITH the tax return, and claim the "481(a)" adjustment (the amount to 'catch up on the depreciation) ON the tax return. You do not need any approval or response from the IRS.

[taxea]

I wrote a detailed response to this post but the site logged me off and now it is lost. I hate when that happens.
So here is a short response.
3115 is not required to deal with this issue. 3115 is used to change the account method. Depreciation is not an accounting method.
You just need to properly correct the error by making adjustments on the current year return and including a detailed Statement of Facts that include the calculations, asset entry, and asset history.

[TaxGuyBill]

I wrote a detailed response to this post but the site logged me off and now it is lost. I hate when that happens.
So here is a short response.
3115 is not required to deal with this issue. 3115 is used to change the account method. Depreciation is not an accounting method.
You just need to properly correct the error by making adjustments on the current year return and including a detailed Statement of Facts that include the calculations, asset entry, and asset history.

Wrong, so wrong.

https://www.irs.gov/publications/p946/ch01.html#en_US_2013_publink1000107388

[fredmod]

File Form 3115 WITH the tax return, and claim the "481(a)" adjustment (the amount to 'catch up on the depreciation) ON the tax return. You do not need any approval or response from the IRS.

Thanks TaxGuyBill. I'll have my friend wait to file his 1040 until we have the form 3115 complete and file them together.

[taxea]

Wrong, so wrong.

https://www.irs.gov/publications/p94...link1000107388

Really? Then why have I (my clients) never received a letter from the IRS?

[TaxGuyBill]

Really? Then why have I (my clients) never received a letter from the IRS?

You just weren't caught. That doesn't make it correct.