Have discovered that in 2013, client receive a six-figure incentive from the Energy Trust of Oregon for buying energy-efficient property (lighting). They reduced the depreciable basis of the asset.
Correct me if I'm wrong, but looking into I believe the correct treatment - because it's an incentive from a third party, rather than a rebate from the manufacturer/seller of the asset - is recognize the incentive as income in the year received, and depreciate the full purchase price of the asset as normal.
My first thought was that we need to do a 3115 because the depreciation is wrong. But none of the automatic changes seems to fit, for the depreciation or income change.
Any thoughts on what's required here? Thanks!