Hi, could someone walk me through the steps to enter a cost segregation study and form 3115 for a previously depreciated property. Client has 4 rentals, has done a cost seg for 1 and has form 3115. I want to make sure everything is linked and entered correctly. Thank you. Also should form 3115 be ink signed from both parties and submitted to the IRS with the tax return and a IRS separate office?
Delete the asset for the property that had the Cost Seg and then enter each individual asset from the Cost Seg.
Then enter the "481(a) Adjustment" from the Form 3115 as an "other deduction" for the property on Schedule E.
Yes, attach a 3115 to the tax return and mail another copy to the separate IRS office. I *THINK* it needs to be ink-signed by the taxpayer rather than digitally signed, but I am not certain. I think the preparer's typed name is fine, although personally, I would ink-sign it.
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