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How many years should a residential rental property be depreciated over that was put in service in 2011? 40 or 27.5

 
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Level 10

How many years should a residential rental property be depreciated over that was put in service in 2011? 40 or 27.5

See the attached publication:

https://www.irs.gov/pub/irs-prior/p527--2011.pdf

 

The depreciable period is 27.5

*A reminder that posts in a forum such as this do not constitute tax advice.*

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Employee Tax Expert

How many years should a residential rental property be depreciated over that was put in service in 2011? 40 or 27.5

Any residential rental property placed in service after 1986 is depreciated using the general Modified Accelerated Cost Recovery System (MACRS), an accounting technique that spreads costs (and depreciation deductions) over 27.5 years. This is the amount of time the IRS considers to be the “useful life” of a rental property.  

 

You would use 40 years if you elected to use the alternative MACRS for depreciation

 

 

 

 

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Highlighted
Level 10

How many years should a residential rental property be depreciated over that was put in service in 2011? 40 or 27.5

See the attached publication:

https://www.irs.gov/pub/irs-prior/p527--2011.pdf

 

The depreciable period is 27.5

*A reminder that posts in a forum such as this do not constitute tax advice.*

View solution in original post

Highlighted
Employee Tax Expert

How many years should a residential rental property be depreciated over that was put in service in 2011? 40 or 27.5

Any residential rental property placed in service after 1986 is depreciated using the general Modified Accelerated Cost Recovery System (MACRS), an accounting technique that spreads costs (and depreciation deductions) over 27.5 years. This is the amount of time the IRS considers to be the “useful life” of a rental property.  

 

You would use 40 years if you elected to use the alternative MACRS for depreciation

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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Level 15

How many years should a residential rental property be depreciated over that was put in service in 2011? 40 or 27.5

As of the TCJA:

Domestic residential rental real estate paced in service after 1986 is depreciated over 27.5 years.

Foreign residential rental real estate placed in service before Jan 1 2018 is depreciated over 40 years.

Foreign residential rental real estate place in service after Dec 31 2017 is depreciated over 30 years.

If you propertly identify the property in TurboTax, and provide the correct in service date, the program will take care of all this for you automatically.