Asset Depreciation

[Terry D EA]

Client has built a building on his primary residential property to run and operate his automotive repair buisness. I understand using the uniform capitalization rules to determine the final building cost. Question is what asset class is this? 1250? and how many years and what method of depreciation would you use? I can't see this as commercial property because of it's location. My thoughts are 25 year property SL. Any suggestions on this?

[Maribeth]

Commerical real estate; 39 years, SL.

Maribeth

[kcjenkins]

Terry, location has nothing to do with it, it is the USE that determines it. And you said this was an automotive repair buisness. There you have it. It's 1250 business property, so it's 39 years SL.

[Pacun]

Non-residential Real Estate Property.

[Terry D EA]

Thanks for the replies. You have confirmed my intial take on this. I guess the idea of building the building on your own property that is not zoned commercial is what put the question in my mind. Over thinking it I guess. Pacun I cerntainly knew this was non-residential real estate but thanks anyway.