On Schedule E how do I know if the property is Eligible 179 Property, Yes or No?

[MelaineC · Accepted solution]

If you are in Schedule E you have residential rental properties and these cannot be used to claim Section 179 deductions.  It's specifically excluded by the IRS. See Publication 946 How to Depreciate Property for more information.  So it would be No, the residential rental property would not be an eligible 179 property.

[CLAVINA]

Is the answer provided still accurate for 2021? 

[LeonardS]

Yes, the answer provided by @MelaineC is still accurate for 2021

@CLAVINA

[learningtaxreturn]

Is this reply still accurate for 2022 return? On this IRS instruction webpage for Schedule E, section 179 is mentioned as a possible additional form to file

[learningtaxreturn]

https://www.irs.gov/instructions/i1040se

[PatriciaV]

Yes, the answer provided by MelaineC is still accurate for tax year 2022.

In general, Section 179 applies to tangible property and certain improvements to nonresidential property. On the instructions for Schedule E (2022) under What's New, Section 179 is available for qualifying energy efficient commercial buildings only. This is an exception to the general rule for Section 179 that excludes buildings (see IRS Pub 946 Section 179 What Property Qualifies), including residential real estate.