Business & farm
Is the rental passive income or treated as a trade or business?
Electing Section 179 Deduction for rental assets can be tricky. The rental needs to be considered a trade or business.
TurboTax does give the option of claiming Section 179 when entering a rental asset, but it may not be allowed depending on how you answer the other questions concerning the rental ("Are you considered a Real Estate Professional").
Please click the "Learn More" link on that screen ("How Do You Want to Deduct this Item")
"(2) Noncorporate lessor. In determining the class of taxpayers (other than an estate or trust) for which section 179 is applicable, section 179(d)(5) provides that if a taxpayer is a noncorporate lessor (i.e., a person who is not a corporation and is a lessor), the taxpayer shall not be entitled to claim a section 179 expense for section 179 property purchased and leased by the taxpayer unless the taxpayer has satisfied all of the requirements of section 179(d)(5) (A) or (B)."
