Why is Turbo tax giving me the option of expensing it.
What MACRS classification are you using for the asset? With $26K of property improvements, I would expect you to be classifying the improvement as residential rental real estate and depreciating it over 27.5 years.
SEC 179 is not expensing it. It's just accelerated depreciation. Residential rental real estate and it's associated assets do not qualify for SEC 179. (Commercial rental real estate does if conditions are met.) But it may qualify for the Special Depreciation Allowance.
Generally, since residential rental real estate almost always operates at a loss on paper every tax year, it's of no real benefit that I can see, to take any type of accelerated depreciation. It's just not going to affect your tax liability for the current tax year at all. I'm sure there are situations I'm just not aware of, where it would benefit though.
