Introduction Under section 179 of the Internal Revenue Code, you can choose to recover all or part of the cost of certain qualifying property, up to a limit, by deducting it in the year you place the property in service. This is the section 179 deduction. You can elect the section 179 deduction instead of recovering the cost by taking depreciation deductions. Estates and trusts cannot elect the section 179 deduction. Electing the section 179 deduction is not always to your advantage. The election may reduce or eliminate your eligibility to claim the earned income credit, reduce your coverage under the social security system, and prevent you from fully using your exemptions and deductions. This chapter explains what property does and does not qualify for the section 179 deduction, what limits apply to the deduction, and how to elect it. It also explains when and how to recapture the deduction.