Generally, you must use the Modified Accelerated Cost Recovery System (MACRS) to depreciate residential rental property placed
in service after 1986.
Electing ADS
If you choose, you can use the ADS method for most property. Under ADS, you use the straight line method of depreciation.
The election of ADS for one item in a class
of property generally applies to all property in that class placed in
service
during the tax year of the election. However,
the election applies on a property-by-property basis for residential
rental
property and nonresidential real property.
If you choose to use ADS for your residential rental property, the election must be made in the first year the property is
placed in service. Once you make this election, you can never revoke it.
For property placed in service during 2016, you make the election to use ADS by entering the depreciation on Form 4562, Part
III, Section C, line 20c.
YOU can really make a mess of your tax return by editing a worksheet.Most are interlinked and must be entered from the originating point.
Use the "I choose what I work on" in the interview and at the asset select other and then you can choose ADS.
