Real Estate Math
Using straight-line depreciation, how many years will it take to fully depreciate a residential rental property for income tax purposes?
A27.5 years✓ Correct
B30 years
C39 years
D40 years
Explanation
For income tax purposes, residential rental property is depreciated over 27.5 years using the Modified Accelerated Cost Recovery System (MACRS). Commercial property is depreciated over 39 years.
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