Use Schedule D-1 to report the sale or exchange of business property when the California basis of the asset(s) is different from the federal basis. To elect IRC Section 179, the corporation must have purchased property, as defined in IRC Section 179(d)(2), and placed it in service during the taxable year.California doesn't conform to the federal guidelines for IRC section 179 deductions, instead using their own deduction limit and threshold amount. Section 179 allows eligible businesses to deduct the full purchase price of qualifying equipment in the year it was put into service. Section 179 allows eligible taxpayers to deduct in full certain business expenses, or "qualifying property," in a single tax year. First enacted in 1958, Section 179 allows you to immediately deduct the cost of these assets during the year in which they are put into service. A Section 179 expense is a business asset that can be written off for tax purposes right away rather than being depreciated over time.