topic Sec. 179 - Asset Entry Worksheet Issue in Deductions & credits

Sec. 179 - Asset Entry Worksheet Issue

Anonymous — Mon, 09 Mar 2026 08:25:49 GMT

I am getting a confusing error message when TT does its final check before e-file.

I own a rental property in MD. In 2021, I took an $1800 Sec. 179 depreciation expense. MD is decoupled from federal 179 limits ($25K annual ceiling) which I'm obviously way under that limit.

Here is the error message I'm getting: "Schedule E Worksheet -- Asset Entry Worksheet (Electrical Panel): State Section 179 (MD) should be blank. MDOnly rental activities identified as commercial property qualify for a Section 179 deduction. This applies to asset types A, B, D, E, F, G and H."

Why would this be left blank? I have an allowable 179 exp. at the state level.

Re: Sec. 179 - Asset Entry Worksheet Issue

RobertB4444 — Sun, 13 Mar 2022 22:29:40 GMT

A section 179 deduction is not allowed on passive income. Rental real estate is generally passive. You should go back to the federal screen and select 'bonus depreciation' instead of section 179. Bonus depreciation is allowed.

Re: Sec. 179 - Asset Entry Worksheet Issue

dginil — Thu, 02 Mar 2023 20:53:33 GMT

If that is true, then why does TT offer the Sec 179 election (and allow it) AFTER responding that the taxpayer is not an active participant?