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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.
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.
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?
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!
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.
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?
Yes.
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