Schedule E worksheet carryforward entry keeping me from submitting return

[Elisah]

The program automatically filled in this entry and now it is saying it is not valid.

"Sec 179 Carryforward-Reg should not be entered, because this rental property is not a commercial property".  If I delete the entry, then I lose the carryover amount and my taxes owed double.

[PatriciaV]

Yes, you will need to remove your entry for Section 179 Carryovers. Section 179 deduction for property used for lodging (ie: rental activity) has been retroactively disallowed. According to IRS Pub 946 Section 179 Eligible Property, if the property is acquired for the purpose of producing income, Section 179 is not allowed.

You may consider filing an amended return for the year you took Section 179 and choose Special (Bonus) Depreciation, or regular depreciation, instead. You will still not have a carryover for this year, however.