Comments on: TPRs: A Guide for Small Businesses and Real Estate Investors

By: Steve

Steve — Thu, 12 Mar 2015 13:27:31 +0000

In reply to Richard Commins CPA. I think those changes sound good, Richard. Thank you for sharing.

By: Steve

Steve — Thu, 12 Mar 2015 13:26:46 +0000

I don’t go into that detail, no. Sorry. BTW I think the treatment in the regs is about three paragraphs. I’ve probably only got a paragraph or so.

You may be wishing for more thorough coverage than is even available at this point–or at least available in sources I know about.

By: Katrina Geety

Katrina Geety — Mon, 09 Mar 2015 21:14:14 +0000

Does you book provide guidance on how to calculate the basis of the partially disposed of asset? For example, does it address how to use the producer price index for restorations? Since the consumer price index can no longer be used, does it explain what to do when it comes to betterments and adaptations?

By: Richard Commins CPA

Richard Commins CPA — Mon, 09 Mar 2015 19:29:43 +0000

In your Form 3115 book, in the “Note: for Appendix C: Example Form 3115, DCN 186,” in order to make the #187 change, in addition to changing “incidental” to “non-incidental” and 1.162-3(a)(1) to 1.162-3(a)(2), I believe there is going to be another change to be made to the #187 wording for the “Proposed Method”. The wording for the 186 change (per 1.162-3(a)(1) states that the materials & supplies will be deducted when first used or consumed. But the Proposed Change” for “incidental” materials & supplies should end with “are deductible in the taxable year in which these amounts are paid, provided taxable income is clearly reflected”.

Thus, in order to use the 186 change as a template for the 187 change, there are three things that must be change:
1. change “non-incidental” to “incidental”
2. change the references to 1.162-3(a)(1) from 1.162-3(a)(1) to 1.162-3)(a)(2)
3. change the wording for the proposed method so that 187 has the proper final clause per 1.162-3(a)(2)

By: Richard Commins CPA

Richard Commins CPA — Mon, 09 Mar 2015 18:41:50 +0000

I made a typo at the end of my comment: 1.162-3(a)(a) should be 1.162-3(a)(1)
I believe there is a significant typo in the Preparing Form 3115 book. It is in the “Note: for Appendix C: Example Form 3115, DCN 186.” You point out that there are two sets of changes to your 186 example to be made in order to request a #187 change. The first change you note is from “non-incidental” to “incidental” and your wording is correct. However, shouldn’t the second change you note read “change the references ‘FROM’ 1.162-3(a)(1) to 1.162-3(a)(2).” You have “change the references ‘TO’ 1.162-3(a)(1) to 1.162-3(a)(2)”

By: Richard Commins CPA

Richard Commins CPA — Mon, 09 Mar 2015 18:37:54 +0000

I believe there is a significant typo in the Preparing Form 3115 book. It is in the “Note: for Appendix C: Example Form 3115, DCN 186.” You point out that there are two sets of changes to your 186 example to be made in order to request a #187 change. The first change you note is from “non-incidental” to “incidental” and your wording is correct. However, shouldn’t the second change you note read “change the references ‘FROM’ 1.162-3(a)(a) to 1.162-3(a)(2).” You have “change the references ‘TO’ 1.162-3(a)(1) to 1.162-3(a)(2)”

By: Steve

Steve — Thu, 05 Feb 2015 23:52:47 +0000

In reply to Marion.

Marion, if you reuse the link you originally used you can get an updated version of the ebook that includes DNC code 186. Sorry, about the omission. A few of the books that we provided the first 24 hours didn’t have code 186… note, too, that we updated the cover image and added a few more links to the primary sources… but it’s the same (slightly better) book.

As far as the code 187, no, sorry, we don’t have that.

By: Marion

Marion — Thu, 05 Feb 2015 19:06:03 +0000

In your e-book, you give examples of a Form 3115 for DNC Code 184 and 192 which are very helpful, do you have examples of Form 3115 for DNC Code 187 and 186, especially 187. Thanks