Understanding Depreciation: Claiming Years for Your Assets

Learn how many years you can claim depreciation for different assets based on IRS guidelines.

450 views

Depreciation can generally be claimed over the useful life of an asset, which varies by type. For example, commercial buildings typically have a 39-year period, while residential rental properties have a 27.5-year period. Check specific guidelines to ensure compliance with tax regulations.

FAQs & Answers

  1. What is depreciation? Depreciation is the accounting method used to allocate the cost of a tangible asset over its useful life. It reflects how an asset's value decreases over time.
  2. How long can you claim depreciation on commercial properties? You can typically claim depreciation on commercial properties over a 39-year period, according to IRS guidelines.
  3. What is the depreciation period for residential rental properties? Residential rental properties generally have a depreciation period of 27.5 years.
  4. Are there specific guidelines for claiming depreciation? Yes, there are IRS guidelines that must be followed when claiming depreciation, ensuring compliance with tax regulations.