What depreciation would you use on a commercial building that was built in 1979, bought in 2006? It is an older structure - do you still use 39 years? Since it is an older building - makes sense that the useful life of the building should be less than 39 years or it does not matter? Thank you for your help!
Nonresidential real estate has a 39 year recovery period under GDS.
See https://www.irs.gov/publications/p946#en_US_2019_publink1000107522
It makes no difference when the building was constructed. The determinative factor is the date the building is placed in service.
Used by whom? You stated it was "bought in 2006". Is that when you bought it and placed it in service?
I am sorry - it is a rental - it had different tenants. Bought in 2006 with a tenant already there. New tenant since 2007.
@LM2020 wrote:
Bought in 2006 with a tenant already there.
Then you would use a 39 year recovery period under GDS (placed in service in 2006).