Form 3115 for missed trades?

[bjscheel]

Does anyone know if we can use Form 3115 for an asset that was traded in but left on the depreciation schedule?

Farmer traded tractors in 2019 and then traded the newest tractor in 2020.  We received the information that both tractors were purchased, so they have been depreciating.  But we were not told that tractors were traded in so those tractors continued to depreciate.  I see all kinds of information that 3115 can be used for missed depreciation but not anything specific to when you have done depreciation for too long (and missed reporting its disposition on 4797).  It's not a case of missed depreciation.  So I'm not sure if this would be done on an amended return or a 3115.

I have read RP 2015-13 and not found what I'm looking for.

[TaxGuyBill · Accepted solution]

It might be able to be argued both ways (a posting error, or depreciating something that is not allowed).

But the prior returns should be amended to report the sale of the tractors, right?  If you are amending anyways, I would just stop the depreciation on those returns by amending.

[bjscheel]

That's what I'm thinking as I've been typing out a memo- that the sale has to go on an amendment.  Was just checking to make sure I couldn't somehow incorporate the sale into the 3115 but I don't think so.

So I guess I start amending at 2019 and work my way up, hoping I don't miss transferring any changes to each successive year 😢