Reporting 179 deduction on DC form D-30

No. The Federal Section 179 expensing rules generally do not apply to rental property because it is considered a passive investment, rather than an active trade or business.

The $25,000 deduction cap generally applies to equipment used in an active trade or business, not residential rental property.

If you claim Section 179 deductions on your Federal return for your rental property, you will usually be required to make an adjustment to add back that amount on your DC return.

As an alternative, for items that do not qualify for Section 179, rental property owners can consider the De Minimis Safe Harbor, which allows them to immediately deduct, or expense, items that cost $2,500 or less per item. You may also qualify for the Safe Harbor for Small Taxpayers for larger building repairs or improvements.

It's understandable that you want to ensure that you get all of the deductions to which you are entitled. However, actively participating in the business does not change the rule. Attached is the 2025 DC Form D-30 Instructions. Note that on page 2, it states, "Certain tax provisions from the federal One Big Beautiful Bill Act (OBBBA) will not apply to District corporation income franchise tax such as immediate expensing of domestic research and experimental expenditures, additional depreciation of qualified production property, and changes to the limitation on business interest deduction."