NATP Weighs In On Form 3115 & Repair Regs

[Lion EA]

Webinars

Education on Your Schedule

The ABCs of Form 3115

In 2014, the Treasury Department expects every taxpayer who owns, leases or produces property to file a Form 3115 to comply with its new mandatory regulations.

With over 150 accounting method changes on this form, Form 3115 is not easy or short. Our upcoming webinar will provide exactly what you need to know to accurately complete Form 3115.

This webinar will go through actual examples of:

• Fixing missed depreciation
• Changing from cash to accrual
• Meeting the requirement for the repair regulations

These examples of the most common changes will come in handy when you encounter them with your clients this upcoming tax season.

Space is limited and spots are filling up quickly!

Register for November 18

 

Register for November 20 

CPE Credits: 2 (100 minutes) for EA, CPA, CRTP, CFP

Fees: $52 for Members/$64 for Nonmembers

 

 

[NECPA in NEBRASKA]

Thanks! I'm definitely signing up for this.

[GeneInAlabama]

What is this about mandatory filing of form 3115 for anyone owning property?  I searched the IRS website and looked at the instructions for form 3115 and the form itself and find nothing about this.  Am I having a senior moment or am I going blind or what is going on?  I have seen this mentioned on this forum recently, but have not seen anything anywhere else.  I haven't seen anything on the Drake forum, but surely others are talking about it if everyone is going to have to do this.  I'm beginning to doubt myself.  Please help this old man.

[NECPA in NEBRASKA]

Gene, I have taken two different seminars that discussed it. I hadn't realized that this was going to be a requirement when I read the new regs. They are ridiculous for small businesses and will be a headache.

[Lion EA]

It's the change in the Repair vs. Capitalization Regulations that is causing this.  2013 and 2014 are the years to "reboot" our clients' depreciation schedules to bring them into compliance.  I felt like it was for new purchases beginning after 31 December 2013, but it's for any item still on a depreciation schedule or that should be on a depreciation schedule or that was capitalized and should have been expensed or was expensed and should've been capitalized or that gets disposed of or....  I'm taking several classes and getting very worried about how much time this will take me this coming tax season (I did NONE of it last season, being a bit undereducated, and have NEVER prepared Form 3115) and how my clients will resent paying what this is worth when THEY didn't make the change but the regulations changed. 

[JMovichEA]

Some information on the new Regs and form 3115 here:

 

http://www.journalofaccountancy.com/Issues/2014/Feb/20137725.htm

[GeneInAlabama]

Thanks everyone.  I still can't understand why the IRS isn't saying more about this on their website.  Or maybe I'm just overlooking it.  I think it is about time for me to get out of this business.

[Lion EA]

There was a lot more a year ago.  But, this "retroactive" part didn't sink in until I took more classes this year (or paid more attention in classes this year).  I was more focused on the fact that we now have some dollar amounts that we never had before; i.e. $500, and that roof repairs are really repairs and maybe the IRS won't try to call them replacements any more.  I signed up for the NATP webinar.  I think I'm going to put a LOT of my clients on extension to have time to think about each item on their depreciation schedule vs. new regs.  And, forget the old regs; need to wipe them out of my mind.  I am going to charge big for this!

[NECPA in NEBRASKA]

The AICPA is trying to get the IRS to change the $500 to $2,500 and get rid of the adjustments to the prior depreciation schedule, because of the hardship to small clients. I hope that it works.

[Lion EA]

Me, too!

[HV Ken]

I just took the NATP Essential 1040 and Beyond the 1040 workshops.  They covered this, but did not create an atmosphere of panic.  I did not leave the workshops with a great level of concern, but this thread may be changing that.  Looks like there is a little more research to do here!

[Kea]

I agree with HV Ken.  I took the same classes and they specifically told us that these new rules did NOT apply to assets already being depreciated.  This was only for new assets going forward.  I also got the NATP email (after taking the classes) that the 3115 was required for all returns with depreciation.

 

Gets confusing when you get two different answers - especially when they both come from one organization that should know the right answer!

[kcjenkins]

Gets confusing when you get two different answers - especially when they both come from one organization that should know the right answer!

 

That's because the IRS is still rolling out new rules, 'clarifications', etc.   I hate the "retroactive" part, that really screws things up for everyone, and it's the hardest thing ever to try to explain to clients.  They always think "you should have warned me", since most of them seem to think we are physic anyway!  Right?  Why not, since we keep their numbers on our ceilings?