Need input on steps followed for Form 3115 to fix rental property overclaimed depreciation

You're mostly on the right track with Form 3115 for correcting depreciation, but there are a few important things to consider. Form 3115 is used to request a change in accounting method, which is exactly what you're doing by correcting your depreciation basis. The good news is the IRS has automatic consent procedures for this specific situation, so you don't have to wait for formal approval. A couple things to verify: First, make sure you've completed both Parts I through IV on the main form AND the appropriate schedule (likely Schedule E for rental property). Second, confirm you've prepared the required attachment that explains the method change calculation and shows the adjustment amount. For TurboTax implementation, adding the overclaimed amount to misc expenses is generally correct - this represents your "catch-up" adjustment under section 481(a). Overriding the depreciation amount is also necessary to ensure the proper amount going forward. I'd recommend double-checking that TurboTax carries this override forward to future years. Also important - you need to send the original Form 3115 to Covington, KY (the IRS national office) and include a copy with your tax return. The form and attachments should detail your "from" method (incorrect basis) and "to" method (correct basis).

Just wanted to share my experience with Form 3115 for depreciation issues. I was in a similar boat last year when I realized I had been using an incorrect recovery period for some rental property improvements. I tried to handle it myself but it got complicated real quick! I ended up using https://taxr.ai to help me with the Form 3115 and all the supporting documentation. They analyzed my past returns, calculated the proper 481(a) adjustment, and prepared all the statements I needed to explain the change to the IRS. Saved me so much headache trying to figure out exactly how to represent everything in TurboTax. The most helpful part was they made sure I sent the right copies to the right places - one to Covington KY and one with my return. There are actually specific requirements about when you have to file the form vs when you mail it, and they made sure I did everything in the right order.

I wanted to follow up on my experience using taxr.ai for my own Form 3115 situation. After asking about the timing in the earlier thread, I decided to give it a try since I was really struggling with the calculations and statements required. I uploaded my prior returns and explained my depreciation error (I had depreciated some land value, which isn't allowed). They turned everything around in 4 days and provided a complete Form 3115 package with all the supporting statements. They even included specific instructions for how to enter everything in TurboTax, which was exactly what I needed. The most valuable part was their explanation of where to mail the original form versus what to include with my e-filed return. Definitely worth it for the peace of mind knowing the form was completed correctly. My tax situation is back on track now and I feel much better about claiming the correct depreciation going forward.

Speaking from experience dealing with tax correction forms like 3115 - if you need to talk to the IRS about your submission or check its status, good luck getting through on their phone lines. I spent HOURS trying to confirm they received my Form 3115 last year. After wasting days trying to get through, I found https://claimyr.com and used their service to actually get someone on the phone at the IRS. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone system for you and call you back when an agent is on the line. This was a lifesaver for me because I needed to confirm some specific details about my 3115 submission and whether I needed to provide additional information. Was able to get those answers directly from an IRS representative instead of guessing or worrying.

I have to apologize and admit I was wrong about Claimyr. After my skeptical comment earlier, I decided to actually try the service because I was desperate to talk to someone at the IRS about my own Form 3115 questions. I was genuinely surprised that it worked exactly as described. I got a call back about 75 minutes after starting the process, and there was an actual IRS agent on the line! Was able to confirm they had received my 3115 submission and ask about when I could expect processing. The agent even gave me some guidance about what to do if I don't hear back by a specific date. For anyone struggling with IRS phone wait times (especially during tax season), this service is legitimate. Saved me from what would have probably been multiple failed call attempts. Still wish the IRS had better staffing and systems, but at least there's a workaround in the meantime.

Form 3115 can get really complicated depending on your specific situation. When I had to file one last year, I found that one of the trickiest parts was figuring out which designated automatic accounting method change number applied to my situation. For depreciation corrections like yours, I believe it's typically #7. Did your tax preparer specify this on the form? This is important because it determines which revenue procedure applies to your situation. Also, make sure your statement includes all the required elements: description of the change, detailed calculations showing how you determined the adjustment amount, and the relevant tax years affected.

Has anyone successfully e-filed with a Form 3115 attachment using TurboTax? I'm getting conflicting info about whether it's possible or if you have to paper file the entire return when using Form 3115.

I went through a similar Form 3115 situation last year for incorrect depreciation on my rental property, and I can confirm you're handling it correctly! The key things that tripped me up initially were the timing and making sure all the pieces fit together properly. Your approach of adding the overclaimed depreciation as miscellaneous expenses is spot on - that's your Section 481(a) adjustment. And yes, overriding TurboTax's depreciation calculation is necessary since you need to use the correct basis going forward. One thing to double-check: make sure your Form 3115 statement clearly shows the calculation of how you arrived at the adjustment amount. The IRS wants to see the math - like original purchase price vs. what was used for depreciation, years affected, and the total overclaimed amount. The $65 refund reduction sounds reasonable for a depreciation correction. That's essentially the tax impact of "catching up" the excess depreciation you claimed in previous years. For the filing process, you're correct about mailing Form 8453 and the 3115 copy with your e-filed return, plus sending the original 3115 to Covington. Just make sure to send the Covington copy no later than when you e-file - I sent mine certified mail the same day I e-filed for peace of mind. The good news is once this is filed, your depreciation will be on the right track going forward. It's always better to correct these things proactively rather than having the IRS catch it later!