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.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
