Already own a property and missed the cost segregation window? Form 3115 (Application for Change in Accounting Method) lets you claim missed depreciation in a single tax year without amending prior returns.
Form 3115, “Application for Change in Accounting Method,” is the IRS tool for taxpayers who need to adjust depreciation schedules or correct expenditure classification. The cumulative effect is captured in a §481(a) adjustment in the current tax year - not by amending each prior return.
For real estate investors, the most compelling benefit is recovering missed or incorrect depreciation. If a property has been depreciated improperly - or not at all - Form 3115 can produce a substantial one-time deduction that improves cash flow and aligns the method with IRS standards going forward.
A correctly prepared Form 3115 also helps keep the record clean. Documenting the change reduces the risk of costly multi-year amendments and shows a proactive approach to compliance.
Catch-up depreciation without amended returns
Switch from straight-line to a more advantageous depreciation method
Correct errors from a previous cost segregation study
Capture missed deductions after a renovation or change in use
Consolidate all adjustments into one current-year filing
Maven prepares the Form 3115 filing package at a flat $995, then coordinates with your CPA so the §481(a) adjustment lands on the current return.
We discuss your current accounting method, property details, and overlooked opportunities - including whether a more advantageous depreciation method applies.
We gather depreciation schedules and financial records to identify unclaimed or misclassified items that could produce a §481(a) adjustment.
We draft Form 3115 and supporting documentation, following guidance such as Revenue Procedure 2015-13. In-house tax experts verify the filing is audit-ready.
We coordinate with your CPA to integrate the method change into the current return and remain available if the IRS requests additional information.
Form 3115 is especially useful when depreciation was missed, misclassified, or applied under a less advantageous method. Common situations include:
If you have owned a property for years without a cost segregation study, catch-up depreciation via Form 3115 can be substantial.
Inherited property often has a stepped-up basis, creating a fresh opportunity to apply the correct depreciation method.
Major renovations and tenant improvements create new depreciable components. Form 3115 can capture missed accelerated depreciation.
If you acquired properties without studies in place, Form 3115 lets you apply the correct method going forward and catch up missed deductions.
Exchanged properties carry over depreciation from the relinquished asset. Form 3115 can help align the new property's method.
If you converted a personal residence to a rental, Form 3115 can help reclassify components from the conversion date.
Form 3115 preparation is a flat $995. That covers consultation through final follow-up - no hourly fees and no surprises.
No. Form 3115 uses a Section 481(a) adjustment that rolls missed depreciation into the current tax year. No amended returns, and no reopening of closed years.
Unlike amended returns, which generally have a three-year statute of limitations, Form 3115 can be filed when you change accounting methods. The longer a property has been held without a correct depreciation method, the larger the catch-up deduction can be.
Maven prepares Form 3115 at a flat rate of $995. That all-inclusive fee covers consultation through final follow-up - no hourly billing and no hidden costs. A cost segregation study, if needed, is scoped separately.
Yes. Each property typically requires its own analysis and Form 3115 filing. We coordinate with your CPA so multiple properties can be handled in the same tax year.
Form 3115 is a standard IRS filing. When it is supported by accurate depreciation analysis and documentation that follows IRS guidance such as Revenue Procedure 2015-13, it demonstrates a proactive commitment to compliance.
Find out how much missed depreciation you can recover with a single filing. Free consultation, no obligation.
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