Form 3115 and proseries

[lyndaj0331]

I am looking for help applying form 3115 to form 1040 return. I think I have the correct information and the 3115 is filled out. I am just not sure how to apply it in ProSeries

[Terry53029]

you just attach as a pdf. when in return click on menu at top "efile" then choose attach PDF

[Just-Lisa-Now-]

Are you asking where/how to make the adjustment for it on Sch E?  

[abctax55]

The actual adjustment amount gets reported on the Form the original amounts would have been reported on (Sch C, Sch E, Sch F....). 

If it's an additional deduction, I put it as an 'other expense' and label it as F 3115 (481a?) adjustment. 

If it's an income item (tho I've never had one of those) - same procedure.  An income adjustment can be spread over several ( 4 - ?) years, I believe. 

[lyndaj0331]

Thank you so much for responding.  I understand about putting the additional deduction on the Sch E as an other expense; but how do I change the asset entry worksheet to reflect the change the recovery period?

[abctax55]

Just enter the correct method, and be sure to adjust the accumulated too (I'm assuming that's the error being dealt with).

Someone who uses PS will have to give the specific 'how'.

It would have been helpful if your original post had asked specifically what you needed help on rather than making us guess.

[lyndaj0331]

I apologize.  This is foreign territory for me.  I have never had to deal with this issue before. Thank you for responding.

[lyndaj0331]

No, I apologize for not being more specific.  I am asking how to handle the asset entry worksheet.  The recovery period is being changed from 27.5 to 5 years.  The asset class is 57. Thank you

[TaxGuyBill · Accepted solution]

---

@lyndaj0331 wrote:

No, I apologize for not being more specific.  I am asking how to handle the asset entry worksheet.  The recovery period is being changed from 27.5 to 5 years.  The asset class is 57. Thank you

---

All you do is change the category to Distributive Trades.  And for the "prior depreciation", you enter the adjusted amount (after the adjustment from the 3115), so it reflects what SHOULD have been taken based on five years (and that is what the 3115 is correcting).

[lyndaj0331]

Thank you so very much.