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@vsc wrote:
Began entering rental expenses under rental property Proseries who flash to say unable to take since property is not commercial property ... A Section 179 carryover which has a message saying unable to take since property is not commercial.
Three questions: If customer is renting the property in 2021 for the full 365 days, was I suppose to change the property type or will it remain the same 1?
What exactly is the item that you used 179 for? Depending on your answer, the program might still be outdated from a few years ago, when 179 was not able to be used for residential rental property.
It still remains as residential rental property, not commercial.
Be careful with using 179 for rentals. ProSeries does NOT factor the income/loss into the income limitation on the top of 4562 (line 11-ish?), so you need to manually change that. For federal purposes, you would usually want to use Bonus depreciation rather than 179 (although 179 may be beneficial for some state purposes).