bonus depreciation

[billjans]

I have two purchases for a rental room in my house that I depreciated using Section 179 in 2019 and that were carried over to 2020 because of a loss on the rental in 2019.  I also have a loss in 2020 on this rental.  Can these carryovers be converted to bonus depreciation items in 2020 because of recent changes in the tax law?

[MaryK4 · Accepted solution]

Yes, you can revoke the 179 by filing an amended return.  For the bonus depreciation, IF you elected out in 2019 you cannot revoke the election without IRS consent. If you did not make the election, you can apply it on the amended return.

[billjans]

Thanks for your response.  Will amending my 2019 return have ramifications for how I prepare my 2020 return for similar items which I purchased in 2020?

[ReneeM7122]

No, the items that you purchased in 2020 won't be affected by the amendment in 2019.

[billjans]

I will try to clarity my original question to avoid potential confusion.  It appears that even though I did use Section 179 to fully depreciate these two items in 2019, the expense cannot be carried over to 2020 because renting a room in my house is not considered a business.  This is all the more reason to consider amending my 2019 return as suggested.  Thanks for the advice.

[ThomasM125]

While it is true you can't take section 179 depreciation on residential rental property, you can use a De Minimis Safe Harbor Election to expense assets purchased if the items cost less than $2,500. You will see this option when you enter assets for your rental in TurboTax.