Commercial Real Estate - HVAC section 179

[drids]

Hello all..

I have a partnership that owns and rents a commercial building with retail and apartments. They installed two new boilers that service the entire building. I believe since the TCJA, this qualifies for section 179 treatment (but not qualified property/special depreciation), but I can't get past the business income limit to take the 179. It doesn't matter what I code the property as, because profit is rental income and not business income. I thought that it did indeed qualify on commercial buildings but am i forced to depreciate over 39 years (J6) because it's not a commercial building used in a business activity or is the rental treated as a business (similar to QBID)? and if it is allowed, how is it communicated in Pro-series?

thanks for any help.

[TaxGuyBill · Accepted solution]

Section 179 only applies to a "Trade or Business".  Does this rental rise to that level?  If so, great.  If not, then 179 is not allowed.

If it does rise to the level of a "Trade or Business", ProSeries automatically assumes a rental does NOT rise to that level.  So you need to add the profit or loss from the rental to line 11 of the 4562 (either by direct entry or if you double click line 11 I think it brings you to a worksheet that has a spot for it).

[drids]

Excellent! Thank you!