Building Depreciation

Our company purchased a commercial building that was 40 years old. Turbo tax automatically calculated the useful life as 39.5 years. How can I change this to 20 years? Thank you.

737

1 Best answer

Level 15

Dec 19, 2020 1:29:00 PM

@wybergba wrote:

Even if there is no way the building will last another 39.5 years?

Yes, the GDS recovery period for nonresidential real property is 39 years.

See https://www.irs.gov/publications/p946#en_US_2019_publink1000107523

Level 15

Dec 19, 2020 1:22:34 PM

The actual age of the building is not relevant when starting depreciation. It starts when the building is placed into service by you. From the time it was placed into service the depreciation is for the next 39.5 years.

Returning Member

Dec 19, 2020 1:25:22 PM

Even if there is no way the building will last another 39.5 years?

Level 15

Dec 19, 2020 1:29:00 PM

@wybergba wrote:

Even if there is no way the building will last another 39.5 years?

Yes, the GDS recovery period for nonresidential real property is 39 years.

See https://www.irs.gov/publications/p946#en_US_2019_publink1000107523

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Building Depreciation