Bonus depreciation

[gman]

Can bonus depreciation be taken on rental property, such as a new A/c?
thanks

[Burke]

Yes, it can.

[TXEA]

This is depreciated over 27.5 years and is not eligible for bonus depreciation. This is a building system, so you can elect partial disposition on the old.

Table 2-1.MACRS Recovery Periods for Property Used in Rental Activities (From Pub 527)


MACRS Recovery Period
Type of Property General
Depreciation
System Alternative
Depreciation
System
Computers and their peripheral equipment 5 years 5 years
Office machinery, such as:
Typewriters
Calculators
Copiers 5 years 6 years
Automobiles 5 years 5 years
Light trucks 5 years 5 years
Appliances, such as:
Stoves
Refrigerators 5 years 9 years
Carpets 5 years 9 years
Furniture used in rental property 5 years 9 years
Office furniture and equipment, such as:
Desks
Files 7 years 10 years
Any property that does not have a class life and that has not
been designated by law as being in any other class 7 years 12 years
Roads 15 years 20 years
Shrubbery 15 years 20 years
Fences 15 years 20 years

----->Residential rental property (buildings or structures)
and structural components such as furnaces,
waterpipes, venting, etc. 27.5 years 40 years

Also, see Chief Counsel Advice 201310028 relative to qualified leasehold improvement - not exactly on point, but tells you what they are thinking.