§ 179.
(d)
Definitions and special rules
(1)
Section 179 property
For purposes of this section, the term “section 179 property” means property—
(A)
which is—
(i)
tangible property (to which section 168 applies), or
(ii)
computer software (as defined in section 197(e)(3)(B)) which is described in section 197(e)(3)(A)(i) and to which section 167 applies,
(B)
which is—
(i)
section 1245 property (as defined in section 1245(a)(3)), or
(ii)
at the election of the taxpayer, qualified real property (as defined in subsection (e)), and
(C)
which is acquired by purchase for use in the active conduct of a trade or business.
Such term shall not include any property described in section 50(b) (other than paragraph (2) thereof).
(2)
Purchase defined
For purposes of paragraph (1), the term “purchase” means any acquisition of property, but only if—
(A)
the property is not acquired from a person whose relationship to the person acquiring it would result in the disallowance of losses under section 267 or 707(b) (but, in applying section 267(b) and (c) for purposes of this section, paragraph (4) of section 267(c) shall be treated as providing that the family of an individual shall include only his spouse, ancestors, and lineal descendants),
(B)
the property is not acquired by one component member of a controlled group from another component member of the same controlled group, and
(C)
the basis of the property in the hands of the person acquiring it is not determined—
(i)
in whole or in part by reference to the adjusted basis of such property in the hands of the person from whom acquired, or
(ii)
under section 1014(a) (relating to property acquired from a decedent).
(4)
Section not to apply to estates and trusts
(5)
Section not to apply to certain noncorporate lessors
This section shall not apply to any section 179 property which is purchased by a person who is not a corporation and with respect to which such person is the lessor unless—
(A)
the property subject to the lease has been manufactured or produced by the lessor, or
(B)
the term of the lease (taking into account options to renew) is less than 50 percent of the class life of the property (as defined in section 168(i)(1)), and for the period consisting of the first 12 months after the date on which the property is transferred to the lessee the sum of the deductions with respect to such property which are allowable to the lessor solely by reason of section 162 (other than rents and reimbursed amounts with respect to such property) exceeds 15 percent of the rental income produced by such property.
(6)
Dollar limitation of controlled group
For purposes of subsection (b) of this section—
(A)
all component members of a controlled group shall be treated as one taxpayer, and
(B)
the Secretary shall apportion the dollar limitation contained in subsection (b)(1) among the component members of such controlled group in such manner as he shall by regulations prescribe.
(7)
Controlled group defined
(8)
Treatment of partnerships and S corporations
(9)
Coordination with section 38
(10)
Recapture in certain cases
(Added [Pub. L. 85–866, title II, § 204(a)], Sept. 2, 1958, [72 Stat. 1679]; amended [Pub. L. 87–834, § 13(c)(2)], Oct. 16, 1962, [76 Stat. 1034]; [Pub. L. 91–172, title IV, § 401(f)], Dec. 30, 1969, [83 Stat. 603]; [Pub. L. 94–455, title II, § 213(a)], title XIX, § 1906(b)(13)(A), Oct. 4, 1976, [90 Stat. 1547], 1834; [Pub. L. 97–34, title II, § 202(a)], Aug. 13, 1981, [95 Stat. 219]; [Pub. L. 97–354, § 3(f)], Oct. 19, 1982, [96 Stat. 1689]; [Pub. L. 97–448, title I, § 102(aa)], Jan. 12, 1983, [96 Stat. 2369]; [Pub. L. 98–369, div. A, title I, § 13], July 18, 1984, [98 Stat. 505]; [Pub. L. 99–514, title II], §§ 201(d)(3), 202, Oct. 22, 1986, [100 Stat. 2139], 2142; [Pub. L. 100–647, title I, § 1002(a)(19)], (b)(1), Nov. 10, 1988, [102 Stat. 3356], 3357; [Pub. L. 101–508, title XI, § 11813(b)(11)], Nov. 5, 1990, [104 Stat. 1388–554]; [Pub. L. 103–66, title XIII, § 13116(a)], Aug. 10, 1993, [107 Stat. 432]; [Pub. L. 104–188, title I], §§ 1111(a), 1702(h)(10), (19), Aug. 20, 1996, [110 Stat. 1758], 1874; [Pub. L. 108–27, title II, § 202(a)]–(e), May 28, 2003, [117 Stat. 757], 758; [Pub. L. 108–357, title II, § 201], title VIII, § 910(a), Oct. 22, 2004, [118 Stat. 1429], 1659; [Pub. L. 109–222, title I, § 101], May 17, 2006, [120 Stat. 346];