I need to choose rental real estate depreciation period to be 27.5 instead of 40 years (not able to choose)

[ravi-awate]

This rental property is used for residential purposes and not used for business

[Zbucklyo · Accepted solution]

If it is a foreign rental property the depreciation period is required to be 40 years.

[jjurski]

why is that? <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-prior/p527--2016.pdf">https://www.irs.gov/pub/irs-prior/p527--2016.pdf</...> does not differentiate between foreign and US-based properties

[tagteam]

".... www.irs.gov/pub/irs-prior/p527--2016.pdf  does not differentiate between foreign and US-based properties"

See Pub. 946 --> https://www.irs.gov/publications/p946#en_US_2017_publink1000107510

Required use of ADS.

You must use ADS for the following property.

• Any tangible property used predominantly outside the United States during the year.