No, your expenses will not reduce your wife's income. You can't deduct more than you made. Your sec 179 is limited to business income. You can end up having to amend or recapture if things don't go as you hope or you sell the property. From Pub 946:
Carryover of disallowed deduction.
You can carry over for an unlimited number of years the cost of any qualified section 179 real property that you placed in service in tax years beginning after 2015, and that you elected to expense, but were unable to deduct because of the business income limitation. This disallowed deduction amount is shown on line 13 of Form 4562. You use the amount you carry over to determine your section 179 deduction in the next year. Enter that amount on line 10 of your Form 4562 for the next year.
If costs from more than 1 year are carried forward to a subsequent year in which only part of the total carryover can be deducted, you must deduct the costs being carried forward from the earliest year first.
If your wife also has sec 179 deductions, you will need to coordinate your amounts to not exceed the totals allowed. For more about sec 179, see Pub 946
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