Form 3115 vs Amending for catch up depreciation

[Mehul Rupani]

Hi Everyone,

Ok - Ive reading a bunch on this and seems the consensus is to file a 3115 for missed depreciation if its been more than 2 years.

I did claim depreciation on 2023's return but did not claim in 2022, 2021,2020. My question is would I have to 1) File a 3115 with next years return and submit an amendment to 2023's to reflect the correction amount? Or what would be the best course of action here?

[Michael Plaks]

@Mehul Rupani

The year of tax return refers to the year of income and expenses, not to the year when you do the filing. You probably mean the tax return you filed in 2023, and that was your 2022 tax return.

When you file your next return later this year, which will be your 2023 tax return, you will need to also file Form 3115 with corresponding attachments recalculating depreciation for all prior years, including the years when you did and the years when you did not claim depreciation. No amended returns.

The process of preparing and filing Form 3115 is not simple, and I would not recommend that you DIY it.