SECTION 179 Deduction Nonresidential rental property

Forum|Forum|11 months ago
April 10, 2025
3 replies
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I installed a new HVAC unit on a nonresidential rental property. The program calculates the full amount as Section 179 deduction, but it doesn't actually subtract the amount from the total income. How to fix this?

Mike9241

The 179 deduction is limited to business income computed without the deduction. If the rental shows a loss before the deduction, the 179 is not allowed but becomes a carryforward until you have business income in that year.

LG501Author

The rental has a net profit.

AnnetteB6

Be sure that you are editing the rental property where you installed the HVAC before choosing to 'Add an Asset'. That will automatically tie the rental together with the asset.

@LG501

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AmeliesUncle

Does the rental rise to the level of a "Trade or Business"?

Section 179 is only allowed for a "Trade or Business".

TurboTax assumes that all rentals are NOT a "Trade or Business".

IF it is a "Trade or Business", you need to modify line 11 of Form 4592. As far as I know, the online version of TurboTax can NOT do this; you would need the CD/downloaded version to do that (and go into "Forms Mode" to modify line 11 of Form 4562_.