I am renting out pasture land. I do not provide any services. I will report the income and expenses on Schedule E, Part I. It will be classified as passive income.
The fence needed to be replaced and cost $6,500. I am planning to report the depreciation on Form 4562, Part III MACRS Depreciation, Section B. I will use the General Depreciation System. When I read Pub 946 fences are listed under 5, 7 and 15 year property classifications.
Am I correct in the reporting of depreciation and which property classification 5, 7 or 15 do I use?
