Form 3115 requests consent to change an accounting method. For rental depreciation, the form is the cover for a detailed computation rather than a substitute for one. The property description, old method, new method, recovery schedule, and section 481(a) adjustment must agree.
Which part covers depreciation?
The IRS Instructions for Form 3115 direct applicants changing depreciation or amortization to Schedule E. They require a description of the affected property, its placed-in-service year, its business or income-producing use, and other relevant basis information. The instructions list designated automatic change number 7 for certain impermissible-to-permissible depreciation changes.
Is there an IRS user fee?
IRS Publication 334 says no user fee is required for an application filed under an applicable automatic-change procedure. That does not mean every depreciation fact pattern is automatic. The applicant still has to fall within the current revenue procedure and comply with its scope and filing requirements.
How is the adjustment reported?
The Form 3115 instructions say a negative section 481(a) adjustment generally uses a one-tax-year adjustment period, while a positive adjustment generally uses four tax years. They also require a copy of the signed form to be filed with the IRS office described in the instructions, alongside the original filed with the return. A CPA should confirm current addresses, timing, and eligibility.
What can the Reality Contact check provide?
The free estimate applies the disclosed 80% building assumption and 27.5-year residential recovery period to the facts supplied. The $99 computation replaces the rough split with source records and builds the allowed-or-allowable schedule and section 481(a) adjustment. The $249 packet adds the corrected ledger, forward schedule, draft Form 3115 sections, and CPA cover note. The CPA reviews, signs, and files.
Where does the operator boundary sit?
This is not tax advice. Reality Contact, LLC prepares a computation and draft workpaper for a CPA. We do not prepare a return, sign or file Form 3115, represent a taxpayer, or decide whether a method change is available. The taxpayer's CPA reviews and files. The free estimate uses a disclosed 80% building assumption and the 27.5-year residential recovery period. It is a real arithmetic check and a demand sample. We reply by email; the paid work replaces the rough land split with the assessor record and closing documents. The current source check starts with this published record.