Thanks Bill, I think they are automatically considered to rise to the level of a trade or business since real estate Lessor is there actual business activity code and that is why they were formed as a c corporation ... I usually do not take bonus depreciation and I think Pennsylvania does not allow it... Pa does allow $25,000 maximum for Section 179 I believe... client has a lot of net income so I'm trying to help them by maybe Section 179 or bonus depreciation ... Thanks for your help