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eligible personal property and certain real property as 3-year
property, 5-year property, 7-year property, 10-year property, 15-
year property, or 20-year property, and assigns that property to
a corresponding recovery period on the basis of the property's
class life. Sec. 168(c), (e)(1), (e)(3). MACRS generally
classifies section 1250 real property as residential rental
property (which is not involved in the instant case) or
nonresidential real property,26 which are assigned to a 27.5-year
recovery period or a 31.5-year recovery period,27 respectively.
Sec. 168(c), (e)(2).
Section 168(i)(1) provides that the term "class life" means
"the class life (if any) which would be applicable with respect
to any property as of January 1, 1986, under subsection (m) of
section 167". That class life generally is the midpoint class
life for the asset guideline class to which the property was
assigned as of January 1, 1986, pursuant to Rev. Proc. 83-35,
26 Sec. 168(e)(2)(B) defines nonresidential real property as
follows:
(B) Nonresidential real property.--The term "nonresidential
real property" means section 1250 property which is not--
(i) residential rental property, or
(ii) property with a class life of less than 27.5
years.
27 OBRA-1993, sec. 13151, 107 Stat. 448, extended to 39 years
the recovery period for nonresidential real property placed in
service after May 12, 1993.
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