Form 3115 Question

[jaygar]

Client did a cost segregation study on a building held in a LLC-partnership.  I've got the 3115 done, but I don't know where to enter the catchup depreciation so it will be reflected in the current tax return.  Apparently, the adjustment amount entered on 3115, Q26, doesn't flow into the partnership return and therefore isn't reflected in the K1.  I saw in a different thread that I am supposed to enter this amount on Sched E, which I am assuming was the taxpayer's 1040 Sched E, which seems odd.  But that might be where it is supposed to go.

Where do I enter the catchup depreciation expense so that it is reflected in the net income and/or AGI for the taxpayer?

TIA.

[PhoebeRoberts · Accepted solution]

It's just an Other Deduction on whatever schedule the depreciation would have been on had it been done correctly all along. I usually use "481(a) adjustment" as the description.