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IRS Publishes Guidance on Change from 40-Year to 30-Year Alternative Depreciation System

Thursday, June 17, 2021 - 4:15PM

The Internal Revenue Service (IRS) today published a revenue procedure that explains how to comply with changes from a 40-year to a 30-year recovery period under the alternative depreciation system (ADS) for certain residential rental property based on a provision of the Consolidated Appropriations Act, 2021. Revenue Procedure (Rev. Proc.) 2021-28 addresses the changes available for certain property placed in service before 2018 that is held by an electing real property trade or business. The 2020 legislation expanded a change made in 2017 tax reform legislation that applied only to property placed in service after 2017. Rev. Proc. 2021-28 provides explanations and examples of the changes.

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