section 179 for a single rental property

[bandb]

Client has a single rental property. HVAC was replaced for $7,000. He claims that under recent tax changes, entire amount can be expensed this year because HVAC was added to qualifying items for section 179. My understanding is that this applies to a business, and having a single rental is not a business. Am I correct and the entire $7,000 cannot be expensed entirely but must be depreciated, and also a section 179 cannot create a loss?

[Just-Lisa-Now-]

Last I saw, this was for commercial properties, not residential.

[TaxGuyBill]

As Lisa said, section 179 for HVAC would only be for nonresidential properties.

And if it is a nonresidential property, the rental would need to rise to the level of a "Trade or Business" to use Section 179.