The Tax Relief Act of 2010 (“TRA-2010”) amended I.R.C. Section 179 in dramatic ways. Among other things, TRA-2010 expanded the definition of Section 179 property to include for the first time 3 types of real property : (1) leasehold improvements, (2) restaurant property and (3) retail improvement property. [Note: These three types of real property are defined in Section 168(e), subparts 6-8, respectively]. The maximum Section 179 deduction that may be expensed for real property placed in service in 2011 is $250,000.
Read IRS Topic 704 — Depreciation http://www.irs.gov/taxtopics/tc704.html for more background information and contact me for assistance.