Carl
Level 15

Business & farm

@cottonfogal SEC179 is not allowed an "residentail" rental real estate. It is on some assets for "commercial" real estate though. That's why that option exists in the SCH E section.

When you take a SEC179 on an asset, then you must take that option on all like-kind assets in the same MACRS classification.

What you need to do is to work through each individual asset listed in the Assets/Depreciation section to remove the SEC179 deduction. You don't need to work through the actual rental property itself, because SEC179 is not even offered on that, since it's not valid.

When you come to the "select an option" screen I expect you'll see that the option to take the SEC179 deduction selected. If so, scroll down and change whatever number you have in the "Amount to deduct" box, to a zero.

Then select the option to "spread the deduction over several years" and finish working through the asset.

You may need to do this for each asset listed, except for the property itself.