Does this qualify for 179 or bonus depreciation?

Forum|Forum|3 years ago
January 8, 2023
1 reply
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I bought a new stove and fridge on 6/21/2017 for my personal property. On 1/1/2022, I converted it into a rental. May I use section 179 to depreciate 100% of cost in 2022 or use bonus depreciation to depreciate 50% of cost in 2022? Why do I get an error message saying only Schedule E activities identified as commercial rental property qualify for a section 179 deduction? Thank you.

Best answer by Anonymous_

Only certain property qualifies for Section 179 expensing and bonus depreciation (the activity in which the property is used typically must rise to the level of a trade or business).

Appliances purchased over five years before conversion to rental use most likely have a rather low fair market value for depreciation purchases, regardless.

Anonymous_Answer

Level 15

Only certain property qualifies for Section 179 expensing and bonus depreciation (the activity in which the property is used typically must rise to the level of a trade or business).

Appliances purchased over five years before conversion to rental use most likely have a rather low fair market value for depreciation purchases, regardless.