The new tax law said we can use the section 179 to deduct the entire cost of the eligible property for the rental property such as roof, HVAC instead of depreciating it over 27.5 years.
However, I don't know how to implement this in turbo tax. For item 1, I understand how to do the math to find the "loss" from the disposition but I am not sure where I can put it in turbo tax. The closet is to put it as sale of business property but I am not sure. For item 2, I saw that there is a section 179 in the asset/depreciation section in rental property income. However, I have tried a few combinations of answers but I still cannot get the number to appear under the section 179 column.
Anyone here has experience on these two items using turbo tax? Thanks.
Is this a simple SFR? If so then you might reevaluate both "options",
1) sounds somewhat dubious
2) I think might represent a basic misunderstanding of new 179, HVAC and roof expensing is availabile for certain commercial properties, not residential rentals. For residential rentals, new 179 expensing applies for tangible personal property (appliances, floating carpet, etc.), and you can code for 179 expensing in TT for that, I did it myself for the return I just completed.
Thank your for your response. Yes, it is a mix of SFR and triplex
For item 2, how do you code it for 179 expense in TT? I don't see such option.
Regarding to the definition of tangible property, the following website said new tax law includes HVAC, roof, etc. Of course I am not sure how accurate the statement is.
You're asking how you do this in TurboTax, but you need to be asking if you're even able to.
S179 is generally only available for Sec 1245 property. There is an exception for qualified improvement property (QIP) and roofs, HVAC, alarm systems, security systems and fire systems for non-residential real estate.
You've indicated your property is residential real estate.
Be careful. Blindly doing what you're thinking about doing via TurboTax because you read about it online is the stuff that amended returns and high CPA fees are made of.
"Take a partial dispositions of asset for a rental property and use that loss to write off the income in 1040"
Might be able to do a partial disposition for the asset you're replacing. I would advise you to work with a tax pro to make sure you're getting it right.
You're asking how you do this in TurboTax, but you need to be asking if you're even able to.
S179 is generally only available for Sec 1245 property. There is an exception for qualified improvement property (QIP) and roofs, HVAC, alarm systems, security systems and fire systems for non-residential real estate.
You've indicated your property is residential real estate.
Be careful. Blindly doing what you're thinking about doing via TurboTax because you read about it online is the stuff that amended returns and high CPA fees are made of.
"Take a partial dispositions of asset for a rental property and use that loss to write off the income in 1040"
Might be able to do a partial disposition for the asset you're replacing. I would advise you to work with a tax pro to make sure you're getting it right.
Don't forget the penalties and large tax bill after an audit.
Thank your for your response. Yes, it is a mix of SFR and triplex
For item 2, how do you code it for 179 expense in TT? I don't see such option.
Regarding to the definition of tangible property, the following website said new tax law includes HVAC, roof, etc. Of course I am not sure how accurate the statement is.