May a landlord claim Section 179 for flooring and deduct the full amount?

[charjean47]

Laminate flooring was installed in the living room, dining room, and kitchen in the amount of $3,474.  May I choose Section 179 and deduct the full amount?  Will the Section 179 cause issues for next year taxes?  Thanks.

[RobertB4444]

You only qualify for section 179 deduction if your rental property qualifies as a business.  If it is a passive investment (which is what most schedule E rent homes are) then it does not qualify.

You may qualify for bonus depreciation which will allow you to write off 60% of the cost this year.  

@charjean47 

[charjean47]

How do I check out bonus depreciation?  Thanks.

[PatriciaV]

TurboTax will offer this bonus depreciation during the asset interview sequence if your property qualifies for this special allowance. Because this type of depreciation can be "recaptured" as ordinary income when you sell the asset, taking this additional deduction is optional.

Basically, bonus depreciation allows you to write off a portion of the cost of eligible property that you begin using during the current tax year. It's considered "special" or a "bonus" because when this IRS rule first went into effect, it was expected to be for a very limited time. The provision has been extended several times over the years.

Read more here: IRS Pub 946 Claiming the Special Depreciation Allowance: