@tracy_roberts wrote:
Couldn't I depreciate over 27.5 years in that case?
I'm not sure whether @AmeliesUncle and I disagree on this issue, but I would depreciate the building over 27.5 years since it is residential rental real estate. I don't believe the length of the rental period, alone, is controlling for the purposes of the recovery period.
I do believe that providing significant services, such as daily maid services, meals, and the like, is controlling in this instance. In other words, if you're operating like a hotel (e.g., bed & breakfast), then it becomes commercial real estate, and the recovery period is 39 years. In that case, the property is reported on Schedule C.
