Am taking section 179 election for assets purchased for rental property. I've entered those under Your Property Assets - Section 179. Do I also enter as Misc Expense?

[AnnetteB6]

No, if you have already entered the cost of the assets and chosen to take the 179 election, you do not need to enter them again as a miscellaneous expense.  That would result in the expense being claimed twice.

@libba1

[libba1]

After I sent my question I checked to see if choosing the 179 election in the asset section caused the expense to be recorded and it did not.  The only way I could find to include the 179 expense was to add it in the expense section.  I used miscellaneous expense.  

[AmeliesUncle]

DON'T enter it as a misc expense.

It would only qualify for Section 179 if the rental rises  to the level of a "Trade or Business".  If it does, the last I checked TurboTax is NOT set up for that, and you need to manually enter some things.

But take a step back.  Why do you want to use Section 179 rather than Bonus Depreciation?

[libba1]

I thought that TurboTax checked to see if it's eligible for the 179 election.  What is the level of "trade or business"?  I can go back to bonus depreciation if needed.  I selected section 179 because it seemed simpler...but apparently not.  I do have a loss this year so you will probably recommend bonus depreciation.  On another note, I understand that my rental losses will carry over to future years.  How many years may I carry over those loses?  I've had higher than usual loses the last two years since I had to do significant maintenance and repair on two homes following bad tenants.  Thanks!

[AmeliesUncle]

They are similar, but in most cases Bonus is better (and simpler).

Rental losses are allowed if your total income is under $100,000.  Then they start to get phased out, and are completely suspended when your income is over $150,000.

There is no limit to the carryover.  They keep carrying over until they can be used, or until you sell the property.

[libba1]

So if I have income of over $100K in 2020 and I show net rental income of $15,000 in 2020 will the rental losses from prior years carry over to the extent of $15,000 so that I will have no taxable rental income?

[AmeliesUncle]

Yes.