It's not allowed. Foreign real estate rental property must use the straight line method over 40 or 30 years depending when it was placed in service. The 27.5 year selection is only for property situated in the US. The alternative depreciation system (ADS) must be used for this property. See the note and the chart in the publication link below.
- 1 40 years for property placed in service before January 1, 2018. However, the ADS recovery period for residential rental property placed in service before January 1, 2018, is 30 years if the property is held by an electing real property trade or business (as defined in section 163(j)(7)(B)) and section 168(g)(1)(A), (B), (C), (D), or (E) did not apply to the property before January 1, 2018.
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