Final answer:
The statement is false. Residential rental properties have a cost recovery period of 27.5 years, while non-residential properties like motels have a cost recovery period of 39 years.
Step-by-step explanation:
The statement that motel buildings have a cost recovery period of 27.5 years is false. Residential rental property, like apartment buildings, has a cost recovery period of 27.5 years under the Modified Accelerated Cost Recovery System (MACRS).
However, non-residential real property, which includes motels and hotels, generally has a longer cost recovery period of 39 years.
The statement is false. Residential rental properties have a cost recovery period of 27.5 years, while non-residential properties like motels have a cost recovery period of 39 years.
The statement that motel buildings have a cost recovery period of 27.5 years is false. Residential rental property, like apartment buildings, has a cost recovery period of 27.5 years under the Modified Accelerated Cost Recovery System (MACRS).
However, non-residential real property, which includes motels and hotels, generally has a longer cost recovery period of 39 years.