In August 2020, I replaced a tub/shower with a shower because my tenant has disabilities at a cost of $8900 to provide a safer bathing option for him.
Since the cost was more than $2,500, it doesn't qualify for safe harbor. Additionally, the correct classification for this asset is "residential rental real estate", since there's no question that it becomes "a permanent physical part of" the structure. It gets depreciated over 27.5 years.
TT won't let me take a section 179 for this, why?
Because residential rental real estate does not, and never has qualified for a SEC 179 deduction. Now it "may" qualify for the Special Depreciation Allowance, which is completely different from SEC 179.
