481(a) Adjustment Calculator
The KBKG 481(a) Adjustment Software for Cost Segregation, depreciation & repair deduction minimizes the time needed to properly document and calculate IRC §481(a) adjustments required for IRS Form 3115, Change in Accounting Method. These adjustments are typically necessary when a Cost Segregation study is performed on a building acquired or improved in a prior tax year and reclassifies costs to different depreciable lives or to expense categories under the new Tangible Property Regulations.
What is a 481(a) Adjustment?
Under current IRS rules, the calculation of depreciation or repair deductions for prior years can be recomputed, and a one-time catch-up adjustment (i.e. IRC §481(a) adjustment) is allowed in the current tax year for missed deductions. The adjustment is the difference between depreciation or repair deductions claimed versus depreciation or repair deductions that could have been claimed by the end of the prior tax year. This adjustment is reported on IRS Form 3115 and does not require amending any prior year tax returns.
Subscriptions provide online, on-demand access including comprehensive calculation reporting to document your file, as well as Q&A support
Meet the Experts
Sign up now for on-demand access
- New York Office Hires New Regional Director10/13/2020Brandon Beller is an experienced tax manager and […]
- Featured Speakers – Strafford Webinar10/05/2020We are pleased to announce that our Principals, […]
- KBKG Tax Insight: Final Regulations Provide Additional Changes to Bonus Depreciation Rules10/02/2020On September 21, 2020, the IRS and Treasury […]