Section 179 write off

Forum|Forum|6 years ago
December 7, 2019
8 replies
23 views

On S-Corp return with qualified improvements (J5). The program is NOT taking the 179 deduction.

ProSeries Professional

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Best answer by JeffRogers

You can claim 179 on qualified real property in 2018, see Rev Proc 2019-08 for how to do this!

J

JeffRogersAnswer

Level 2

You can claim 179 on qualified real property in 2018, see Rev Proc 2019-08 for how to do this!

T

TaxGuyBill

You are right, Rick and I were mistakenly referring to Bonus Depreciation (which is still not allowed until Congress corrects it) but it still qualifies for Section 179.

rbynaker

Level 13

Qualified improvements are currently in limbo pending a technical correction by Congress. Here's an article on it:

https://www.kbkg.com/news/kbkg-tax-insight-tax-reform-changes-to-qualified-improvement-property

T

TaxGuyBill

In other words, current law says it does not qualify for Section 179.

If and when Congress makes the technical correction, then it qualifies.

I'm not sure if the S-corporation is the same, but in the Individual returns in ProSeries, the Information Worksheet (where you enter the taxpayer's name, address, etc.) it has a check box to use the 15-year Recovery Period for Qualified Improvements (which should then allow Section 179). However, I would not recommend filing that way until the law is changed to reflect that.

J

JeffRogers

Level 2

There is now a box to check in the Lacerte depreciation input screen to identify the "Qualified Real Property." I am not sure which update added this box, but it's now there! Problem Solved!

rbynaker

Level 13

Unless you're like everyone else on this thread and using ProSeries. :)

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