Real estate acquired 12/31/70 or earlier - used (CA treatment)

Alerts and notices

The following table provides information about how the CA treatment will be built for real estate acquired 12/31/70 or earlier - used.

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

Method: Straight Line

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.
125% DB

Method: 125% DB

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.

150% DB or

200% DB

Method: 150% DB

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.
Years Digits

Method: Years Digits

Life

  • Uses the appropriate life based on the type entered in PPT type - CA field.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is equal to 31.5 or 39 or greater than 40, the CA life is 45.
  • If the PPT type - CA field is blank or Exempt is entered and the Tax life is not equal to 31.5 or 39 and less than 41, the CA life is 40.
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


Was this article helpful?

Thank you for the feedback!