179 deduction and rental loss?

Question

I have rental property (Houses) and I purchased a truck to use 100% in the business this year.
I wanted to take the 179 deduction for part of the truck but I have a loss on my rentals
because of alot of improvements I made to them.
I also work as a nurse which generates additional income.
When I subtract the rental losses from my wages as a nurse I have taxable income.
Can I take the 179 deduction based on that or because my rental property has a loss
Im not allowed to claim a 179 decuction.
Im a little confused about this and I would appreciate any help on this matter.
Thanks

Answer 1

Im not sure anyone has answered your question yet. But the answer is no. You cannot deduct Sec 179 expense if you already have a loss generating from your Schedule E. Sec 179 expense is only allowed if you have net income.

Also, the "improvements" you made to the rental properties should be amortized over 27.5 years. If youre referring more to repairs, then they can be expensed.

Answer 2

A truck is transportation equipment - and not eligible for the Sec. 179 deduction, unless it is a special vehicle over 6000 lbs that is eligible for the Sec 179 deduction such as a Hummer (H2), etc (search out @ irs.gov Section 179 luxury automobiles).

The loss is irrelevant in your case. Yes, it is true that if you have a loss in a business, you are not allowed to claim Sec. 179.

And, Section 179 is not available on any rental property; profit or loss.

Answer 3

According to IRS Publications 527 "Residential Rental Property" and 946 "How To Depreciate Property" unless you are a real estate professional having rental property is not considered an active trade (no matter how hard you work at it) and does not qualify for the 179 deduction.

Also, your loss on your rental property may be limited if the loss is greater than $25,000 or your AGI is greater than $150,000 (for all filling statuses except married filling separate) your loss may be limited by the Passive Activity rules. See form 8582 "Passive Activity Loss Limitations" for more details.

Answer 4

You cannot take the section 179 deduction against your other income. You have to carry it forward against rental income.

Answer 5

Are you attempting to recapture the $6000 you ignored out on for the 2d 0.5 of the year? you could no longer. purely fill out a while table E with earnings of $6000, expenses of $4350 a year. in case you marketed for a clean tenant, deduct that cost besides. _

Answer 6

Just to add one more comment to the mix here, you have to depreciate improvements. You cannot write off the entire cost in the year of the expenditure.