What class life to use?

[equinecpa]

What class life should be used for an employee bunkhouse on a ranch? I've seen from 20-39 used.

Per pub 225 farm buildings that don't fall into one of the other specific categories should use 20 years. But is a bunkhouse really a farm building? Is their a definition out there?

Carolyn

[equinecpa]

Anyone? Do we go with residential rental (27.5), Farm Building (20) or Other Commercial (39)?

[Bees Knees]

I flipped a coin and got 20 yr - farm building.

I don't know the answer. Not too many have ranch clients. But when there is an area where the rules don't seem to give you an obvious answer, error on the side of the client. If you can't find the answer, an IRS auditor won't be able to either, and I doubt they would make you go to court over it.

[Dennis V]

Unless they are charging rent for the bunkhouse, I wouldn't use 27.5 yrs. Commercial use doesn't sound right either. If the building is on a ranch or farm, I think 20 yrs would be appropriate.