IRS Form 3115 is required to notify the IRS when a taxpayer wants to change their method of accounting, such as shifting from straight-line to accelerated depreciation after a cost segregation study. There are two types of accounting method changes: automatic (most common, including cost segregation, and don’t require advance IRS approval) and non-automatic (complex, with approval required). Filing Form 3115 provides substantial tax savings opportunities and is essential for implementing cost segregation on existing properties. The form demands detailed compliance and timely submission with the tax return to ensure IRS acceptance.

References:

https://www.irs.gov/forms-pubs/about-form-3115

Our experts at Alliant Advisory & CPA Buddy guide clients through the Form 3115 process for accounting method changes and cost segregation. Contact us for tailored support.