I own a beachfront condo that I rent out throughout the year (I never use it myself). Can I claim first-year expensing (Section 179 deduction) and/or bonus depreciation for new appliances I’ve bought the unit in 2009?

I own a beachfront condo that I rent out throughout the year (I never use it myself). Can I claim first-year expensing (Section 179 deduction) and/or bonus depreciation for new appliances I’ve bought the unit in 2009?

If the rental unit is investment property for you (and not a business), then you can’t claim first-year expensing. The Section 179 deduction is limited to business property and not to property acquired only for the production of income, such as rental property. However, you can claim 50% bonus depreciation as long as the appliances are new (not preowned), along with regular depreciation for the appliances purchased and placed in service in 2009.