To qualify for the Section 179 deduction, your property must have been acquired for use in your trade or business.

Property acquired only for the production of income, such as investment property or rental property (if renting property is not your trade or business), and property that produces royalties do not qualify.

Special qualified properties related only to nonresidential (commercial) rental properties can take the Section 179 deduction.

Qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property are allowed a Section 179 deduction, even if the properties are related to a Schedule E (Form 1040) Supplemental Income and Loss rental property, as long as the lessor considers the rental an active trade or business.

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