TaxGuyBill
Level 15

@dascpa wrote:

TaxGuyBill -

For my own knowledge, why would you need a change of accounting method Form 3115 when you are not changing the method?  If you amend the returns for the allowable years you have established a method of depreciation.  If you do not amend you are just using the correct accepted method in the current year with reporting [not deducted] accumulated depreciation.  Thanks for your reply.


 

Not claiming depreciation for 2 or more consecutive years sets the accounting method and it is an "impermissible" method of accounting.

So to change to a "permissible" method of accounting, you need to file Form 3115, and that also lets you 'catch up' on the depreciation via a §481(a) Adjustment.

Because the 2 or more consecutive years of not claiming depreciation 'sets' the accounting method, amending is not allowed to correct it.