Posted by Don Wilson (OK) on April 11, 2006 at 22:45:33:
25 year property…Heres the Pub 946 reference. Get a new CPA that knows rental properties. I’m not a tax guy just able to read. Have fun…
Don Wilson (OK)
25-year property. This class is water utility property, which is either of the following.
Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property.
Municipal sewers other than property placed in service under a binding contract in effect at all times since June 9, 1996.
Residential rental property. This is any building or structure, such as a rental home (including a mobile home), if 80% or more of its gross rental income for the tax year is from dwelling units. A dwelling unit is a house or apartment used to provide living accommodations in a building or structure. It does not include a unit in a hotel, motel, or other establishment where more than half the units are used on a transient basis. If you occupy any part of the building or structure for personal use, its gross rental income includes the fair rental value of the part you occupy.
Nonresidential real property. This is section 1250 property, such as an office building, store, or warehouse, that is neither residential rental property nor property with a class life of less than 27.5 years.