I own a single-family home that I rent out. I consider it a passive activity -- although I make the management decisions, I spend less than 750 hours a year managing this property. This rental activity generates a few thousand dollars in profit after property taxes, insurance, and depreciation. Last year I purchased a small computer to track expenses on for this rental property and want to depreciate it as a Section 179 expense.
But because I had a small (less than $400) loss on another small business I own and that I report on Schedule C, the Turbotax software says that I cannot write off the computer on Schedule E because of the loss on Schedule C. Does anyone know if that is correct? Thank you.
DCowboys
