IRS Issues Guidance with Optional Depreciation Table for Residential Rental Property

Wednesday, December 26, 2018 - 11:00am

The Internal Revenue Service Friday issued Revenue Procedure 2019-08, providing an optional depreciation table for residential rental property that is depreciated under the alternative depreciation system (ADS) under Internal Revenue Code (IRC) Section 168. Tax reform legislation passed late last year changed the recovery period under the ADS from 40 years to 30 years for residential rental property placed in service after 2017. Rev. Proc. 2019-08 also provides guidance on deducting expenses under IRC Section 179(a) and additional guidance on deducting depreciation under IRC Section 168(g).