Using 3115 DCN 7 to fix the common issue of a rental property that didn't have land split out of the depreciable basis, resulting in too much depreciation taken. Caught before the year of sale. Question 16 in Part II asks for a "full explanation of the legal basis supporting the proposed method for the item being changed". I've seen few sample 3115's, but all seem to leave out question 16 where the change applies to rental depreciation (too much or too little).
Can anyone point me to the section of the tax code or some other authority that tells us we shouldn't depreciate land (land has an infinite useful life)? I know that's correct, but I have no idea how to cite it for the purposes of question #16.
Can anyone point me to the section of the tax code or some other authority that tells us we shouldn't depreciate land (land has an infinite useful life)? I know that's correct, but I have no idea how to cite it for the purposes of question #16.
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