topic Building Depreciation in Business & farm

Building Depreciation

wybergba — Sat, 19 Dec 2020 21:18:05 GMT

Our company purchased a commercial building that was 40 years old. Turbo tax automatically calculated the useful life as 39.5 years. How can I change this to 20 years? Thank you.

Re: Building Depreciation

DoninGA — Sat, 19 Dec 2020 21:22:34 GMT

The actual age of the building is not relevant when starting depreciation. It starts when the building is placed into service by you. From the time it was placed into service the depreciation is for the next 39.5 years.

Re: Building Depreciation

wybergba — Sat, 19 Dec 2020 21:25:22 GMT

Even if there is no way the building will last another 39.5 years?

Re: Building Depreciation

Anonymous_ — Sat, 19 Dec 2020 21:29:00 GMT

@wybergba wrote:

Even if there is no way the building will last another 39.5 years?

Yes, the GDS recovery period for nonresidential real property is 39 years.

See https://www.irs.gov/publications/p946#en_US_2019_publink1000107523