Residential rental real estate does not qualify for SEC179. It has to be depreciated over 27.5 years.
Now there are some assets that "may" qualify for the Special Depreciation Allowance. But residential rental real estate is not one of them.
Keep in mind also that when depreciating assets, the depreciation is not a permanent deduction. All depreciation must be recaptured in the tax year you sell or otherwise dispose of the property. Two things happen in the year of recapture.
1) The recaptured depreciation is taxable in the year of recapture
2) The recaptured depreciation is added to your AGI in the year of recapture, and therefore has the potential to bump you into the next higher tax bracket.
Since you are required to take depreciation by law (like it or not) it's sometimes best to try and keep that depreciation amount as low as legally possible. Whats best for your given situation can depend on the amount of depreciation you're required to take, as well as how long you intended to keep the property..
