Form 3115 Section 481(a) Adjustment for Schedule E
If you have already entered the Section 481(a) adjustment on Form 3115 line 26, the instructions below explain how to enter the adjustment on Schedule E line 3.
To enter a Section 481(a) adjustment to income or expenses on Schedule E Supplemental Income and Loss for rental properties:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal.
- Click Rent or Royalty Income in the Federal Quick Q&A Topics menu to expand the category and then click Real estate rental income
- Click Review on the Schedule E you wish to adjust
- Click Continue on the first screen and it will bring you to a screen titled Rental and Royalty Income – Topics
- Click Review next to Depreciation and Amortization
- Click Continue or No until you reach the screen titled Rental Income – Section 481(a) Adjustment
- Enter the amount of Section 481(a) Adjustment (+/-) for income and/or expenses
- Repeat for each applicable Schedule E Section 481(a) Adjustment