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HVAC qualifies for Section 179 but diagnostic generates in Lacerte.

DSellers
Level 1
A commercial real estate client has a new HVAC system installed that should qualify for Section 179
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3 Comments 3
TaxGuyBill
Level 15

What does the diagnostic say?

It only qualifies for Section 179 if the rental rises to the level of a "Trade or Business".

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DSellers
Level 1

Invalid method for Section 179 (39 year property).  This is a commercial rental shopping center.  It rises to that level.

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TaxGuyBill
Level 15

I'm a ProSeries user, so I can't help directly with Lacerte, but are you sure you entered the correct type of asset?  You can't enter it as a regular improvement to the property.  You need to indicate it it is the category for HVACs, Roofs and Fire/Alarm/Security Systems.