Section 179 Deduction
Elect to expense qualifying assets immediately instead of depreciating over time.
Section 179 lets you deduct the full cost of qualifying business assets in the year purchased, rather than depreciating over multiple years. The 2025 limit is $1,250,000. For real estate, this applies to personal property inside rentals (appliances, HVAC systems, etc.) but NOT the building structure itself.
Current Section 179 limits are tracked in the Tax Center → Tax Rates. Updated annually when IRS publishes new figures.
Depreciation
A tax deduction for the gradual wear of your rental property — 27.5 years for residential.
Bonus Depreciation
First-year additional depreciation on qualifying assets — phasing down annually.
1031 Exchange (Like-Kind Exchange)
Sell one investment property and buy another to defer all capital gains taxes.
Educational content only. Consult a CPA or attorney for advice specific to your situation.