40 year amortization of residential rental purchased in May of 2000

[jasdlm]

This is my first year on this return, and I have never seen this.  I remember some weird thing in the 80s where there was 19 year depreciation.  Was there something special in 2000?

 

Thanks in advance to all those who were practicing in 2000.

[jklcpa]

This is my first year on this return, and I have never seen this.  I remember some weird thing in the 80s where there was 19 year depreciation.  Was there something special in 2000?

 

Thanks in advance to all those who were practicing in 2000.

 

 

lol,  that weird thing in the 80's was called ACRS, the predecessor to MACRS.  Tonight, that seems like a million years ago.

 

I'm not sure why you are asking about the 1980s since the asset depreciation you are questioning was put in service in 2000.  Anyway, in 2000, residential rental would have a 27.5 year life under MACRS GDS.   Under MACRS ADS, the residential rental life is 40 years.  Does that help?

http://www.irs.gov/publications/p946/ch04.html#en_US_2013_publink1000107509

 

 

If you want to see more about ACRS -  http://www.irs.gov/publications/p534/ch01.html#d0e205

[Hahn1040]

Is it perhaps foreign real estate?

[jasdlm]

It is not foreign real estate.  I think Judy must be right.  It must be ADS.  Maybe it was originally less than 50% business (strange for a residential rental, but who knows).  Thanks much!

 

When I first started preparing tax returns (and was new to this Board) I questioned the 19 year depreciation.  Jainen and OldJack rightly let me know that I had better learn my tax history a bit better.  When I think back to what I didn't know then (certainly don't know everything now, but at least I hope now that I know when I need to ask), it terrifies me that I was completing other people's returns!