I used The MACRS 7 year 200DB method not knowing I needed to use the 27.5 year. I've been doing this for 5 years. What should I do to correct this? Should I start using the correct method?
- posted
11 years ago
I depreciated the roof replacement on our rental home using the wrong method
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- posted
11 years ago
You have adopted a method of accounting because of your use of the impermissible method for two consecutive years. You need to file Form
3115 requesting a change in method of accounting to the proper method. Part IV of the form is where you enter the section 481(a) adjustment (the amount of excess depreciation taken that will trigger additional income that you have to report). You have the option to spread the income over 4 years or take it all in one year.Filing the 3115 is not for the faint of heart. See a tax pro.
See IRS Pub 946 for more information.