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How do I enter section 179

EATAX1
Level 1
I entered some 179 expenses on schedule E rental but they do not carry to form 4562
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3 Comments 3
sjrcpa
Level 15

You're doing it backwards. You enter the assets in the depreciation section and elect to take the 179 deduction.

Are you sure they qualify for 179?

Have you considered bonus depreciation?

The more I know, the more I don't know.
Accountant-Man
Level 13

First, what sjrcpa said. 

Then, commercial rentals only get sec. 179.

** I'm still a champion... of the world! Even without The Lounge.
TaxGuyBill
Level 15

@Accountant-Man wrote:

Then, commercial rentals only get sec. 179.


 

Residential can get it too.  They changed that a few years ago.

However, for any rental, it must rise to the level of a "Trade or Business" in order to qualify for Section 179.

 

I have no idea how ProConnect works, but in ProSeries the 4562 income limit (line 11) automatically assumes the rental does NOT rise to the level of a Trade or Business.  So if it DOES rise to that level, you need to manually change line 11 on the 4562.