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Level 4
posted Dec 3, 2020 5:57:45 PM

Property Type for Rental Property

I own a mobile home park and another rental home which are my sole source of income.  When I enter in my schedule E, I have selected my Mobile Home Park as a Property Type 2, Multi-Family Residence.  When I try to take the Section 179 deduction, Turbo Tax flags my entry and states I must use either property type 4, Commercial, or property type 4, Self-Rental.  I don't know which one to choose.

 

My rental home I classify as a property type 1, Single Family Residence.

 

0 4 2122
4 Replies
Level 12
Dec 3, 2020 6:03:30 PM

You own the whole park? Sounds like a business that should go on SCH C. If residential on SCH E you can't use Section 179.

Level 4
Dec 3, 2020 6:31:16 PM

No, we've always been a schedule E.  It was set up that way by my accountant when we first purchased it.  He did our taxes for several years until they just got too expensive.  That's when I took over with Turbotax.

Level 12
Dec 3, 2020 6:57:02 PM

But you can only use Sec 179 if your rental rises to the level of a business.

Level 15
Dec 3, 2020 6:58:52 PM

It can go on a Sch E however it is NOT a multi residence if you don't own the homes themselves ... you are just renting the land.  Review the depreciation worksheet the CPA did to see which option you need to choose if any since land is not depreciated.