Ask your accountant about IRS Form 3115 and IRS Regulation 481A. They concern depreciation of property in your buildings.
My accountant said that the change meant that small items that I had been depreciating (because I was a conservative taxpayer) could be totally written off in my 2014 return, and any new items for 2014 that I would have depreciated with a life span of under ten years could now be totally depreciated in 2014. Cool.
I tried to read Form 3115 and even though I am a frustrated ex-accountant, it is extremely difficult for me to understand, it is many pages, and I now pay someone to read and prepare these forms. Quoting from an article on the http://nolo.com website: “Unfortunately, Form 3115 is an extraordinarily complex form that few landlords will be able to file without the help of a knowledgeable tax professional. (You cannot complete this form with tax preparation software such as Turbo Tax.) “
Another quote: “Under current IRS rules, it appears that virtually every landlord who owned rental property before 2014 is required to file Form 3115. There are no exceptions or exemptions, even for the smallest landlords.”
Time for you to make a call. This is a change that I have heard no one talk about. Another reason why I have picked my current accountant who also does my 1031 Exchanges.
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