Transfer Of PropertyTaxesEASY
Randy recently bought a 12-unit apartment building. What is the minimum number of years in which he may depreciate the building for federal income tax purposes?
Correct Answer
C) 40.5
Residential rental property is depreciated over 27.5 years under IRS rules.
Answer Options
A
27.5B
39C
40.5D
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Related Topics & Key Terms
Related Topics:
federal-vs-state-tax-rulesproperty-classificationtax-basis-calculationcost-segregation
Key Terms:
MACRS depreciationresidential rental property27.5 yearsIRC Section 168Tax Reform Act 1986
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