new shop and depreciation

[ljwalters]

Client built a new shop on their residential property.

is this real property sub non residential real estate 39 year life?

Brain dead so early in the season...............

Also why is it some times when putting in a new asset the asset entry recovery period, method , and convention. and most of the time it doesn't.

[kcjenkins]

Yes, commercial property is 39 yrs.

Don't understand the 2nd question?

[michaelmars]

there is an 80/20 or 90/10 rule, i forget where you can still treat the building as one unit and not have part 39 and part 27.5

[schirallicpa]

May I ask what the shop is for? Is it a solid building on a real foundation, or a tin building on a floating slab?

[ljwalters]

It is a solid building on heated foundation for building custom cabinets.

Clients bought new home with property so they could build the shop (has its own power bill) totally seperate from home except for land.

shop will also have the office in it upstairs as does his old shop. Trying to get out from under the 1288 per month shop rent.

The shop has cost over 15K so far. Already using it but not totally complete yet.

The second part of the question is

Some times the asset worksheet auto fills the years and methods and some times it does not. Am I doing something wrong or are other people having the same problem

[michaelmars]

now that you say its a separate building, i would use 39yr

[schirallicpa]

Agree with 39 years.

I have been doing well with my depreciation so far, and it seems to be filling in for the most part. Had trouble with milage flowing to schedule F. I'm not sure what the trick is, or if it's just that the moon and the stars have to be lined up just right.