Simplified IRS Form 3115 Preparation
RE Cost Seg can help you navigate the complexities of preparing IRS Form 3115 to realize the benefits from a cost segregation study and optimize your tax strategy.
Form 3115 Preparation Service
Let RE Cost Seg handle the intricacies of your Form 3115 preparation, so you can focus on growing your real estate portfolio and maximizing your tax savings. Our optional add-on Form 3115 Preparation service includes:
Expert Form 3115 Guidance
We evaluate your specific circumstances to determine whether filing Form 3115 is needed. If a property has been placed in service and taken straight line depreciation for 1 or more years, a 3115 form is likely needed.
CPA Support
We are available to collaborate with your CPA or tax return preparer, ensuring that Form 3115 is completed with accuracy. You or your CPA are responsible for signing and filing the form.
Correct Deprecation Methods
If you've used the wrong depreciation method in the past, we help you correct it and recover missed deductions.
Audit Protection
Audit protection is included in all of our cost segregation studies and provided at no additional cost to the client.
Ready to Save on Taxes
Request Your Free Proposal
Our team of experts will work with you to identify potential savings and make the process easy and hassle-free.
IRS Form 3115 FAQs
Real estate investors may need to file IRS Form 3115 if they're switching depreciation methods or correcting past errors. After completing a cost segregation study, which reclassifies components of your property to shorter depreciation schedules, you will need to use Form 3115 to formally request a change in accounting method with the IRS, if you already filed taxes on the property using straight line depreciation in previous tax years. This allows you to apply accelerated depreciation without having to amend previous tax returns, unlocking potential tax savings for current and future years. Filing this form ensures compliance with IRS regulations while maximizing your deductions for assets that qualify for faster write-offs. It’s a crucial step in optimizing your tax strategy and should be handled carefully to avoid penalties.
Absolutely. After completing a cost segregation study, Form 3115 enables you to change your depreciation method and accelerate deductions on specific components of your property. By adjusting your asset classification, you can claim larger deductions in the earlier years of ownership, boosting your cash flow.
Failing to file Form 3115 when a change in accounting method is required can result in missed tax benefits, potential penalties, or even IRS scrutiny. Without filing this form, you may be unable to recover lost deductions or correct past errors, which could affect your long-term tax strategy and financial performance.
RE Cost Seg completes the Form 3115 preparation as well as the required attachment of statements and 481(a) calculation. You and your tax preparer must sign and:
- Attach the original Form 3115 to the filer's timely filed (including extensions) federal income tax return for the year of change.
- File a copy of the signed Form 3115 (duplicate copy) with the IRS National Office at the address provided in the Address Chart for Form 3115, later, no earlier than the first day of the year of change and no later than the date the original is filed with the federal income tax return for the year of change.
- Refer to IRS Guidelines on page 2 of Form 3115 on when and where to file.
Our Form 3115 preparation service is an optional add-on service for each cost seg study you purchase from RE Cost Seg. Request a free proposal or contact us for more detailed information on your properties.