@Bamafrank wrote:
I have a commercial rental property and I am material participate in this business, as I am entering details in TurboTax business, with only rental real estate income, I am not able to take any sec 179 deductions. I understand this is because there is no ordinary income, however, should this be different if rental property is my trade/business
Section 179 is only for an active "trade or business" *AND* has further restrictions because it is leased to somebody else (see link below for "leased property"). Because of these two restrictions, TurboTax automatically assumes that your rental property does NOT qualify.
If your rental DOES meet both of those requirements, you need to change line 11 on Form 4562 by using the "Forms" and directly editing the line on the Form (or if you click line 11, it will bring you to a small worksheet). You can only do that using the CD or downloaded version of TurboTax.
Leased property.
Generally, you cannot claim a section 179 deduction based on the cost of property you lease to someone else. This rule does not apply to corporations. However, you can claim a section 179 deduction for the cost of the following property.
Property you manufacture or produce and lease to others.
Property you purchase and lease to others if both the following tests are met.
The term of the lease (including options to renew) is less than 50% of the property's class life.
For the first 12 months after the property is transferred to the lessee, the total business deductions you are allowed on the property (other than rents and reimbursed amounts) are more than 15% of the rental income from the property.
https://www.irs.gov/publications/p946#en_US_2022_publink[phone number removed]
