Taking Section 179 Expense on Real Property

For tax years after 2009, you can elect to expense qualified real property purchases under Section 179. Legislation has changed the definition of qualified real property for Section 179 expensing over the years.

To take Section 179 expense on real property

1. In the Property Type field in Asset Detail, select a real property type (R, S, C, E, or F).
2. Select the 179 Deduction field, and then select the Down arrow. The §179/Bonus Details window appears.

3. Select the Qualified §179 Property check box. This tells the system this asset is qualified for the deduction.

4. In the Classification field:
   1. For tax years 2010 through 2017, select the type of real property (qualified leasehold improvement, qualified restaurant property, or qualified retail improvement).

   2. For tax years after 2017, the system will indicate “Qualified Real Property.”

5. In the §179 Amount field, enter the amount of Section 179 expense you want to take, and then select OK.

The total cost and total Section 179 elected for each class of property appears on a supplement when you run the Form 4562 - Depreciation and Amortization report.