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datavet
New Member

How can I enter a prior year section 179 deduction on an asset that is being put into TT for the first time?

The asset is rental unit furniture. It was placed into service in 2016 and a Section 179 deduction was taken by the CPA. I am doing 2018 taxes for the first time using TT, and it wants to apply a 50% reduction and depreciate the rest. Cannot find anywhere to enter the 179 amount.  Thank you for your help!
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DDollar
New Member

How can I enter a prior year section 179 deduction on an asset that is being put into TT for the first time?

Section 179 deductions are not Allowed on rental property. You cannot claim the section 179 deduction for property held to produce rental income. This would include any rental assets along with capital improvements. To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business.  If you took a section 179 for rental property assets, you should file an amended return for that year.

When you enter an asset placed in service in a prior year in TurboTax, the program will calculate both prior year and current year depreciation.  You have to indicate the same date of service that was used originally.  You will also be given an opportunity to adjust the calculated prior year depreciation so that it agrees with your 2017 depreciation schedule.  It will not allow you enter current or prior Section 179 for assets that do not qualify.



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3 Replies
DDollar
New Member

How can I enter a prior year section 179 deduction on an asset that is being put into TT for the first time?

Section 179 deductions are not Allowed on rental property. You cannot claim the section 179 deduction for property held to produce rental income. This would include any rental assets along with capital improvements. To qualify for the section 179 deduction, your property must have been acquired for use in your trade or business.  If you took a section 179 for rental property assets, you should file an amended return for that year.

When you enter an asset placed in service in a prior year in TurboTax, the program will calculate both prior year and current year depreciation.  You have to indicate the same date of service that was used originally.  You will also be given an opportunity to adjust the calculated prior year depreciation so that it agrees with your 2017 depreciation schedule.  It will not allow you enter current or prior Section 179 for assets that do not qualify.



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datavet
New Member

How can I enter a prior year section 179 deduction on an asset that is being put into TT for the first time?

Thank you David. Understanding that, it makes sense that TT did not allow the 179 deduction. Regards, datavet
DDollar
New Member

How can I enter a prior year section 179 deduction on an asset that is being put into TT for the first time?

You're welcome!  I'm glad I was able to help!!
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