Form 4562 - Residential Rental Property depreciation is auto calculated based on 40 years how it can be reduced to 27.5 Years

[view2 · Accepted solution]

40 years recovery is correct for foreign residential property.

[anil-ayyar]

Pl ref 168(g)(2)(C).... the table clearly says for residential life is 30 years and non-residential life is 40 years. follow link: <a rel="nofollow" target="_blank" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:168%20edition:prelim)">http://uscode.hous...>

[michael_bulloch]

Can someone please point to where foreign residential real estate is specified at 40 years? Additionally and specifically, please address Mexico and Canada which to my understanding under NAFTA are to be treated just like a domestic residential rental on schedule E

[pstoehr]

I have a similar question after reviewing 26 USC 168 (g)(1)&(2).  Residential rental property has a recovery period of 30 years, not 40 years that TT automatically applies.  Am I misinterpreting the Code?