Revenue procedure · 2025
Rev. Proc. 2025-23 (as modified by Rev. Proc. 2025-28 and Rev. Proc. 2026-32)
Rev. Proc. 2025-23, 2025-24 I.R.B. 1481
IRS revenue procedure
Audio summary
A short audio walkthrough of this rule: what it says and why it matters for your study.
What it holds
The current annual list of automatic accounting method changes under Rev. Proc. 2015-13. Effective for Form 3115 filings made on or after June 9, 2025. Amplifies, modifies, and supersedes in part Rev. Proc. 2024-23. Includes depreciation reclassification changes and disposition changes used in cost segregation filings.
Why it matters for your study: This is the current list of automatic method changes for Form 3115 filings, as modified by Rev. Proc. 2025-28 and Rev. Proc. 2026-32. A reclassification must appear on this list to qualify as automatic. The filing must also meet the terms of the procedure. Citing the list does not make a filing valid by itself.
Where this comes from
Revenue Procedure 2015-13 is the permanent framework for how accounting method changes are filed. But it does not list which specific changes are automatic. That is done in a companion procedure that is updated every year.
Rev. Proc. 2025-23 is the current annual list. It became effective June 9, 2025. It replaces in part the prior year version, Rev. Proc. 2024-23.
What it establishes
The annual list covers many types of tax accounting changes. For cost segregation, the entries that matter are the depreciation reclassification changes and the disposition changes.
Depreciation reclassification entries cover moving components from one MACRS class to another after a study. Disposition entries cover partial dispositions of retired structural components, which is how you recognize a loss when you replace a roof, HVAC unit, or other major component.
How it shows up in a study
When your study is done and your preparer files Form 3115, the form cites the change number from the current annual list. That filing is part of what you are buying, so it belongs in any comparison of what a study costs . The change number names which specific change is being made. The filing still has to meet the terms of the procedure to be automatic.
If the wrong procedure year is cited, the IRS may question whether the change was properly filed.
What it does not mean
This procedure updates every year. The 2025-23 version applies to filings made on or after June 9, 2025. Filings before that date use the prior year version.
The core cost segregation changes have been on the automatic list for many years and are not new to this edition. But the list in force on your filing date is the one that applies, and a citation alone does not make a filing valid.
- Category
- Methodology & procedure
- Applies to
- All property types
- Status
- Vetted
This page explains a tax authority in plain words. It is not tax advice for your situation. Joel Salas, our Director of Tax, signs every study. Citation is provided so you or your advisor can read the primary source.