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wandys
Returning Member

Can I take Section 179 deduction for Residential Rental Property? (I read on TaxAct.com that it's not allowed)

I spent $4900 for wood floors on a residential rental property in 2018. I entered it as Capital Improvement, and TurboTax is asking if I want to take Section 179 deduction. However I read on TaxAct.com that Section 179 deduction is not allowed for rental property -- is this true? If so why is TurboTax not telling me that i am not allowed to take it (TurboTax knows this is a rental property)?
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IreneS
Intuit Alumni

Can I take Section 179 deduction for Residential Rental Property? (I read on TaxAct.com that it's not allowed)

 

UPDATED FOR TAX YEAR 2019

 

Yes - While you cannot take Section 179 deduction for the residential rental property, itself,   you can use Section 179 to deduct tangible, long-term personal property.  This includes, for example, kitchen appliances, carpets, drapes, or blinds. 

 

[Edited | 4/15/2020 | 1:35pm PDT]

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2 Replies
IreneS
Intuit Alumni

Can I take Section 179 deduction for Residential Rental Property? (I read on TaxAct.com that it's not allowed)

 

UPDATED FOR TAX YEAR 2019

 

Yes - While you cannot take Section 179 deduction for the residential rental property, itself,   you can use Section 179 to deduct tangible, long-term personal property.  This includes, for example, kitchen appliances, carpets, drapes, or blinds. 

 

[Edited | 4/15/2020 | 1:35pm PDT]

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
wandys
Returning Member

Can I take Section 179 deduction for Residential Rental Property? (I read on TaxAct.com that it's not allowed)

I talked to one TurboTax Live Expert this morning who said I can go ahead and take Section 179 for kitchen and bath remodeling, and guided me to enter a the bath remodel as capital improvement with 27.5 yr depreciation and with Section 179 with no error or warning.

However, when I got TurboTax "Final Reviews", it said "Cannot use Section 179 for Real Properties"!?

So I called a second Live Expert who said I cannot use Section 179 for anything that would be depreciated 27.5 years

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