Question

Which of the following statements is true regarding tax depreciation?

a. Nonresidential real property is depreciated over 39 years.
b. Residential real property is depreciated over 39 years.
c. Depreciation on real property starts at the beginning of the year in which the property is placed in service.
d. Nonresidential real property is depreciated over 27.5 years.

Answer 1

D. Nonresidential real property is depreciated over 27.5 years.

Step-by-step explanation:

The correct statement regarding tax depreciation is Nonresidential real property is depreciated over 27.5 years.

Depreciation is a method used by businesses to account for the wear and tear or obsolescence of an asset over time. The Internal Revenue Service (IRS) provides guidelines for depreciating different types of assets, including real property.

Nonresidential real property, such as commercial buildings, is depreciated over 27.5 years, while residential real property, such as rental homes, is depreciated over 27.5 years.