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Real Estate

Cost Seg Look-Back Study (Form 3115)

Do cost seg on properties owned for years; catch up depreciation now.

Overview

Own a property you never cost-segregated? Perform the study now and file Form 3115 (Automatic Accounting Change) to catch up all missed accelerated depreciation as a §481(a) adjustment in the current tax year. No amended returns needed. Can generate $50k–$500k of catch-up depreciation deduction in year one on a property owned 5–10 years.

Best fit
Long-time landlordsCommercial property ownersAnyone who missed cost seg
Estimated impact
$50–500k catch-up depreciation in current tax year

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