I have an individual client that is filling out a 1040. He owns 11 rental properties, so he has an extensive schedule E.
We are electing De Minimis Safe Harbor and Small Taxpayer Safe Harbor only. On form 3115 we are filling out Part II, Part IV and Schedule E because he is changing his depreciation method. Does that sound right so far?
What is the code for his change in method?
Do we have to file a 3115 for each of his 11 rental properties? Or only one 3115 for all properties?
We are keeping it simple and not going back (we capitalized all expenses -- from dishwashers to roofs -- with a life more than one year). We are starting the new methods as of of 1/1/14, so do we have a zero 481(a) adjustment?
Does anyone have a good example of a 3115 filled out for a client like this?
Alex