Catch up depreciation Rental Section 179

[MG26]

When I added the Rental Property asset, It talked about accepting the figures if I didn't have section 179. I did add a computer as an asset with Section 179 back in 2019 so I don't know if this should be considered or entered somewhere. I'm reading that it's mention on form 4562 line 6?

Also, I don't see that it deducted the prior year(s) depreciation from income. I expected income to be changed to zero and having to carry over to next year(s). I do see it took one year off. I understand to file the Form 3115.

[MG26]

So I put the large prior years depreciation amount in the misc expenses and ended up with a negative income value. I guess that's correct.

[DianeW777 · Accepted solution]

No, you do not need to add the computer back to your rental as an asset since you used Section 179.  You must keep track of it on paper or tax return files should you ever sell it.  At the time of a sale it would be a taxable event.  If at some point you junk it then that should be noted with details and kept with your tax file.  A sale no matter the amount will be a taxable gain because you no longer have a cost basis and depreciation would need to be recaptured up to the amount of the sales price.

Yes, you have made the correct entries in your return.  Be sure to mail Form 3115 with your tax return to the address provided by TurboTax. 

@MG26