Section 179 on rental tangible property - Spidell

Section 179 on rental tangible property

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Message Board Section 179 on rental tangible property

This topic contains 3 replies, has 3 voices, and was last updated by Lynn Freer 2 weeks, 3 days ago.

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  • #174788
    Anonymous

    Is it correct that we can now take Section 179 on tangible property used in a residential rental?  It doesn’t matter on Fed with the 100% bonus depreciation.  Does CA conform to this change?

  • #175121
    Mike Giangrande
    Participant

    You can now claim §179 for personal property used in a residential rental such as refrigerators, stoves, etc., purchased for use in providing lodging, but the rental must be considered a “trade or business.”

    According to the IRS, property you acquire only for the production of income, such as investment property, rental property (if renting property is not your trade or business), and property that produces royalties does not qualify. (See IRS Publication 946) This means that if the property is purchased for an investment and does not rise to the level of a trade or business, then you cannot claim the §179 deduction. However, bonus depreciation is available for personal property used in connection with a rental property held as an investment.

  • #175613
    Anonymous

    Thank you Mike.  Does CA conform to taking 179 on personal rental property, or do we still have to depreciate the assets?

  • #175710
    Lynn Freer
    Participant

    No, CA has not conformed