Ever wonder how assets are depreciated?

1. 3-year property
   1. Tractor units for over-the-road use.
   2. Any race horse over 2 years old when placed in service.
   3. Any other horse over 12 years old when placed in service.
   4. Qualified rent-to-own property.
2. 5-year property
   1. Automobiles, taxis, buses, and trucks.
   2. Computers and peripheral equipment.
   3. Office machinery (such as typewriters, calculators, and copiers).
   4. Any property used in research and experimentation.
   5. Breeding cattle and dairy cattle.
3. 7-year property
   1. Office furniture and fixtures (such as desks, files, and safes).
   2. Any property that does not have a class life and has not been specifically included in any other class.
4. 10-year property
   1. Vessels, barges, tugs, and similar water transportation equipment.
   2. Any single purpose agricultural or horticultural structure.
   3. Any tree or vine bearing fruits or nuts.
5. 15-year property
   1. Certain depreciable improvements made directly to land or added to it (such as shrubbery, fences, roads, and bridges).
   2. Service station buildings and other land improvements used in the marketing of petroleum and petroleum products (but not facilities related to petroleum and natural gas trunk pipelines).
6. 20-year property
   1. This class includes farm buildings (other than single purpose agricultural or horticultural structures).
7. Residential rental property
   1. This class includes real property such as a rental home or structure (including a mobile home) if 80% or more of its gross rental income for the tax year is from dwelling units.
      • A dwelling unit is a house or apartment used to provide living accommodations in a building or structure.
      • This does not include a unit in a hotel, motel, inn, or other establishment where more than half the units are used on a transient basis.
      • If you occupy any part of the building or structure for personal use, its gross rental income includes the fair rental value of the part you occupy.
      • The recovery period for this property is 27.5 years.
8. Nonresidential real property.
   1. This class includes real property that is neither of the following.
      • Residential rental property (defined in 7 above).
      • Property with a class life of less than 27.5 years.
   2. The recovery period for nonresidential real property is:
      • 39 years for property you placed in service after May 12, 1993, or
      • 31.5 years for property you placed in service before May 13, 1993