Allocation of Section 179

[Lincoln99]

We have multi business properties for Schedule E, how do I allocate Section 179 to each business property?

[halpalms]

split it pro rata.......you'll have to do the math yourself.

[Anonymous]

I'm not sure I understand the problem.  taking 179 is an asset by asset election.    there is no requirement to take 179 up to the max on an asset.   so really the allocation is up to you.  but why take 179 which is subject to a business income limitation.  if the asset qualifies for bonus depreciation, there is no business income limit.   generally if an asset placed in service in 2018 qualifies for 179 it qualifies for bonus.    

[Carl]

SEC179 does not apply to real property (except in special situations which are not applicable to rental real estate). It applies to "qualified" assets; and not all assets qualify. But do understand that if you take SEC179 on an asset in one property, then you must give equal treatment to that same asset type across all properties.

For example, if you elect to take the SEC179 deduction on a new water heater that you installed in property A, then if you also installed a new water heater in property B, you must also take the SEC 179 on the new water heater in property B. You can't elect to take the deduction for property A, and then depreciate the same asset type in property B.