I own a 4plex and live in 1 unit. I rent out 3 units. I replaced the main sewer line * Is this a section 179, or depreciated? * Claim the total cost or just rental part?

[Carl]

SEC 179 can not be used for residential rental property at all. If your total cost was less than $2,500 then you can expense it, giving 1/4 of the cost to each until so that a total of 3/4 of it is expensed.

If more than $2,500 then you have to depreciate it over 27.5 years. You can only claim/depreciate the 3/4 of the cost that is rental.

[muka]

Thanks for your reply. Note it appears from 2018, the residential exclusion on section 179 is reduced:

https://www.buildium.com/blog/how-the-new-tax-plan-affects-property-owners/

":One significant limitation on Section 179 is that rental property owners could not use it to deduct the cost of personal property used in residential rental units. The TCJA eliminates this restriction starting in 2018. Thus, starting in 2018, landlords may use Section 179 to deduct up to $1 million in personal property in rental units each year. For example, Section 179 may be used to deduct appliances and furniture in rental units."

So given that now that section 179 is allowed for some things on a residential unit, when is it allowed, and when it isn't allowed.