We are in the midst of preparing Form 3115's to address the TPR regulations for a new client. Upon reviewing the client's depreciation schedules and prior year tax returns, we found several expenditures that were written off, even though they should have been capitalized.
The Form 3115's that are being filed will address expenditures that were capitalized, but should now be expensed under the new TPR regulations (DCN 184), as well as DCN #7 to resolve depreciation issues.
How should the expenditures that were expensed, but should've been capitalized be handled on the Form 3115s; DCN #7 impermissible to permissible depreciation?
The Form 3115's that are being filed will address expenditures that were capitalized, but should now be expensed under the new TPR regulations (DCN 184), as well as DCN #7 to resolve depreciation issues.
How should the expenditures that were expensed, but should've been capitalized be handled on the Form 3115s; DCN #7 impermissible to permissible depreciation?
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