Revenue procedure · 2025
Rev. Proc. 2025-23
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 operative list for cost segregation Form 3115 filings made in 2025. A reclassification must appear on this list to qualify as automatic. Citing the current version confirms the filing is valid and that audit protection applies.
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. The change number confirms which specific change is being made and confirms it qualifies as automatic.
If the wrong procedure year is cited, the IRS may question whether the change was properly filed. Citing 2025-23 for a 2025 filing ensures the reference is current and correct.
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 citing the current version matters for the validity and audit protection of a current filing.
- 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. The way this authority applies to your property is reviewed by a licensed tax professional. Citation is provided so you or your advisor can read the primary source.