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Level 2
posted Feb 25, 2020 11:33:29 AM

Scheulde E Worksheet - Section 179 Error

I have rental properties (operated as a business) that I have elected to take section 179 depreciation for some qualified improvements -- when I run the error check however I am getting this:

 

"Schedule E Worksheet -- Asset Entry Worksheet: Section 179 should are blank. Only schedule E activities identified as commercial rental property by selecting Property type 4 Commercial, or 7 Self-Rental on the Schedule E Worksheet qualify for a Section 179 deduction."

 

I am getting this error on multiple entries. One of them is even from a section 179 deduction I took on a property from 2018 that is simply listed under my assets. I prepared my taxes with TurboTax last year as well and did not have this problem.

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1 Replies
Level 2
Feb 26, 2020 11:05:59 AM

FYI I figured this out -

 

The amount should have been recorded under "Special Depreciation" and not "Section 179 Depreciation" since this was a residential rental unit.