residential real estate rental

[garycarols]

In advance, THANK YOU for helping me with this!  Does a residential rental qualify for either the 179 deduction or the special depreciation allowance?  I understand the home itself is depreciated straight-line over 27.5 years.  We lost our tenant of 10 years in 2024 and were left needing serious upgrades to the inside of the home (new flooring/countertops/fireplace insert/mouse infestation mediation/etc.).  I have read and re-read Pub 946 and am still not certain how to proceed with depreciation of these repairs.  Again, I appreciate your guidance on this!!

[garycarols]

I just re-read my posted question, and realize that my word "repairs" at the end SHOULD have been "Repairs and Improvements."  Thanks again!

[RobertB4444 · Accepted solution]

No, you can't take section 179 or bonus depreciation on residential real estate UNLESS it is a business.  And since this sounds like it is your only rental property you probably don't qualify to use your rental property as a business.

Section 179 requires that the rental property be a business, bonus depreciation requires that the item have a useful life of less than 20 years.

Here is a discussion about the rules to qualify your rental property as a business.

@garycarols 

[garycarols · Accepted solution]

RobertB4444:  I am NOT a business, so I can NOT take the section 179 or the special depreciation allowance.  You don't know what a relief it is to understand that now!  THANK YOU SO MUCH!