Real estate acquired 1/1/71 or later - residential rental - useful life less than 20yrs - used (CA treatment)

Alerts and notices

The following table provides information about how the CA treatment will be built for real estate acquired 1/1/71 or later - residential rental - useful life less than 20yrs - used.

When the Tax method is CA treatment will be set up as

All MACRS and ACRS methods Straight Line

125% DB

150% DB

200% DB

Method: Straight Line

Life

Years Digits

Method: Years Digits

Life

Land

Method: Land

Life: Uses the life entered in the Life field for the Tax treatment.

Assumption

Real property assets with a Tax life of 31.5 or 39 or greater than 40 are considered commercial and industrial assets. All other real property assets are considered residential rental assets.

After building the CA treatments, you should review and modify the CA treatment lives for the following assets.

  • Commercial and industrial assets where the Tax life is not 31.5 or 39 and is not greater than 40.
  • Residential rental assets where the Tax life is 31.5 or 39 or greater than 40.

Related topic

How UltraTax CS determines the appropriate method and life


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