Form 3115 - generic or detailed?

[frazzled]

I am trying to do my first ever Form 3115 to comply with the new regs. Any and all insights are welcome.

 

Background - simple Sched E taxpayer. One rental single family home. House is the only thing on the depreciation schedule. He placed in service in 2008 - no other improvements. Repairs and supplies have been minimal.  Always used a $200 threshold for expenses.

 

The client and I decided to file a form 3115 with a $0 481(a) adj to err on the side of caution. 

 

Do I need to get all detailed and throw section codes out right and left? (how do you make that weird section code symbol anyway?) Or can I use more generic language?

 

My sample generic wording:

 

for line 12:

Item being changed: Taxpayer is adopting the Tangible Property Regulations issued by the IRS on 9-13-2013.

Present Method: In compliance with the temporary regulations.

Proposed Method:  Compliance with TD 9636.

 

for line 13:

Rental property - single family home

 

Line 25:

The taxpayer reviewed its prior accounting records through 12-31-13 and determined there were no assets that were incorrectly capitalized under the prior regulations.  Conversely, it was determined that there were no materials, supplies, or repairs that were incorrectly expensed that should have been capitalized under the new regulations.

No 481(a) adjustment is required.

 

 

I think simple taxpayers deserve simple solutions. But Keep It Simple Stupid does not always work with the IRS.  Some of the examples that I have seen are way overdone (IMO) for our simple little guys. 

 

Is the generic wording acceptable? 

 

Thanks

Debbie

 

 

[Lion EA]

Sample forms filled out as examples from BrassTax for $20.  Worth the money.  And, a spreadsheet for attachments is free.

 

http://brasstax.com/3115%20Booklet.htm

 

Also, free newsletters from David & Mary Mellem:

 

Dave L Mellem <[email protected]>

 

Make sure you ask him for his 01/30/2015 newsletter Form 3115 Requirements and Our Interpretation.

[frazzled]

I have all of those resources. I am wanting something simpler and generic for $0 adjustments.

Edited February 3, 2015 by frazzled

[MAMalody]

I don't see why you are filing the form.