Furniture & Fixtures - rental assets acquired after 12/31/96

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

From IRS Announcement 99-82, 1999-32 IRB 244, IRC Sec(s). 167 for Depreciation-Form 4562 corrected:

"This document contains a correction to the recovery period for certain personal property used in a rental real estate activity (appliances, carpeting, furniture, etc.) referred to in the 1998 Instructions for Form 4562, Depreciation and Amortization, and in Publication 527, Residential Rental Property.

"Reference(s): Code Sec. 167

"Full text

"The 1998 instructions for Form 4562, Depreciation and Amortization, and Publication 527, Residential Rental Property, classify certain personal property used in a rental real estate activity (appliances, carpeting, furniture, etc.) as 7-year property. The correct classification is 5-year property. This property is included in Asset Class 57.0, Distributive Trades and Services (see Rev. Proc. 87-56, 1987-2 C.B. 674). Therefore, the correct recovery period to be used for the regular tax is 5 years under the General Depreciation System (GDS) and 9 years under the Alternative Depreciation System (ADS).

"When using a 5-year recovery period for this property for the regular tax, any alternative minimum tax (AMT) adjustment generally must be figured using a 9-year recovery period. However, if the property was placed in service after 1998, the same recovery period applies for both the regular tax and the AMT."

Share This