Class Life

[Questionguy101]

The recovery period of a residential rental property is 27.5 years. But what's the class life of it? Is it 27.5 years too?

Actually my question is whether a residential rental property is qualified for the 50% bonus depreciation allowed by the Stimulus Act. One of the requirements is that the property has to have a class life less than 20 years.

[Burke]

The 27.5-year depreciation schedule was a compromise between those in Congress who wanted 25 and those who wanted 30. I believe straight-line is 40. In any scenario, it is more than 20, so no bonus.

[Questionguy101]

The 27.5-year depreciation schedule was a compromise between those in Congress who wanted 25 and those who wanted 30. I believe straight-line is 40. In any scenario, it is more than 20, so no bonus.

Thank you Burke.