How much average does it cost for filling Form 3115?

[kwyp]

There are two senarios:

1. Taxpayers miss to fill depreciation on Sch E since year 1 for about 10 years. 

2. taxpayers complete cost segregation study and need a CPA to file adjustment depreciation on Sch E. 

Based on the above two cases, how much average does it cost for filing form 3115 by CPA? 

[TaxGuyBill]

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@kwyp wrote:

for filing form 3115 by CPA? 

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By a CPA?  Or by any tax professional?

It is long, technical form that requires skill and knowledge, so charge accordingly for it.  I generally under-charge for my work, but I wouldn't touch a 3115 for less than $200.  If there are many assets to calculate (such as for a Cost Seg) or other special circumstances, it could be much higher.

When was the Cost Seg done in comparison to when the original return was filed?  In most cases, the Cost Seg should have been done before the first tax return was filed.  At the very least I would think the Cost Seg would usually be done before the second tax return was filed, in which case amending the original return would probably be better than filing Form 3115.

[kwyp]

Great input TaxGuyBill. An additional copy need to send by mail or fax to IRS as well? 

[kwyp]

Depreciation adjustments based on cost segregation study is not quite easy and staightforward if you do not made cost segregation study for your rental at its first year. 

It needs to reconcile the data between NEW accounting method and OLD accounting method. The differences are the adjustments need to entered at current year depreciation coloumns.

It will take time to figure out  the relatively compliciated calculations and math if it is your first Form 3115 without any guidence and training.  

[taxmo · Accepted solution]

The prices I've seen for completing a form 3115 to add a cost seg study or fix past deprecation typically range from $500-$1000. 

[kwyp]

It makes sense to charge at least $500 for filing this form. It includes fill in all the questions of the form, prepare for all the required attachments, calculations, and worksheets.