| The IRS allows a taxpayer to claim the Section 179 deduction for the cost of qualifying property (eligible property) acquired for use in a trade or business. By claiming the Section 179 election. the taxpayer is allowed an election to deduct all or part of the cost of certain qualifying property in the year you place it in service.
The IRS code specifically identified ineligible property for section 179 elections as being the following as shown below:
* Buildings and their structural components
* Income-producing property (investment or rental property),
* Property held by an estate or trust
* Property acquired by gift or inheritance
* Property used in a passive activity, (used in Schedule E)
* Property purchased from related parties
* Property used outside of the United States
A rental property business is a passive activity as defiined by the IRS tax code! Therefore, in conclusion, you cannot claim the section 179 deduction for property held to produce rental income or any activity deemed a passive activity! | 
