Am I allowed to take a Sec 179 on my Sch E rental property? TurboTax was giving me the option to do Sec 179 and I thought this was prohibited. Any thoughts?

[markjames61640-]

PS Not sure if this matters, but I am an active participant and my sch E is showing a loss. I am renting out the first floor while I live on the second floor.

[CherylW · Accepted solution]

Yes, you can take Section 179.

This, from IRS Publication 946, How to Depreciate Property:

To be depreciable, the property must meet all the following requirements. 

• It must be property you own. 

• It must be used in your business or income-producing activity.

• It must have a determinable useful life. 

• It must be expected to last more than one year. 

[markjames61640-]

Thank you so much for the reply. I just wanted to double check. In the Describe this Asset screen - I picked Residential Real Estate Property. Now I do not have the option to Sec 179 the furnace and stove I purchased. Does this mean I cannot use Sec 179?

[CherylW]

The question comes later in the questionnaire, after you enter the asset and the asset's life.

You do have to have placed the asset in service during 2018, for you to take Section 179.

[markjames61640-]

Thanks! I checked again and I did place it in service on December 2018. I changed it to appliances just to check and the question comes up regarding taking Section 179. This however does not show up when I select the residential RE Property class. Would it be okay to leave the asset class as appliances in this case?

[CherylW]

Residential RE property would be the house or any outbuildings.  You did fine by listing it as an appliance.