section 179 Carryover amendment

[astridwilson]

I have a section 179 Carryover from last year.  I added assets to a rental property.  This is a short term fully furnished beach front rental.  It rents weekly.  I replaced the AC unit, added appliances and bought new master bedroom furniture and mattresses in 2022, I listed these as assets and then chose I'll deduct the full value and take the 179 deductions.  Now on the 2023 taxes, I see an error message that reads "section 179 carryforward-Reg should not be entered, because this rental property is not a commercial property".  

Turbo Tax CPA told me I needed to amend 2022 Taxes and depreciate over years versus the SEC 179.  So, my question is:  How will I know when I can properly file my 2023 taxes using the desk top software, so that the carry forward is eliminated, and the proper depreciation amounts are listed for the assets that created the carry forward error?  

I owe taxes so; I need to know how much to pay?

I really wish Turbo Tax had said "HEY, don't use Sec 179 as the carry forward created will not be valid on this rental property next year". 

[AmyC]

You use desktop. Once you amend your 2022 return, you can carry that data file forward to prepare your 2023 return. You can file both returns when ready and in any order. Filing the return does not mean you have to pay that day.

Helpful:

• Publication 527 (2023), Residential Rental Property
• About Publication 946, How To Depreciate Property chapter 2 for sec 179 qualifications and requirements.
• Payments

[astridwilson]

I have finished my 2022 amendment and mailed it today.  How do I carry that data file forward to prepare my 2023 return?  Do I need to actually redo the 2023 from scratch?

[AmyC]

Ohhhhh you have been working on 2023. You have two choices:

• You can make the adjustments in the rental section. Just go into the assets area and make it match your 2022. Be sure to add in the depreciation claimed on your 2022 return so you are up to date.
• You could start the 2023 return from the 2022 data file just like you normally start your new return each year by importing the data.

Depending on how much you have and have done, adjusting the rental asset section may be the easiest.