Terry D EA Posted April 6, 2010 Report Share Posted April 6, 2010 Client has built a building on his primary residential property to run and operate his automotive repair buisness. I understand using the uniform capitalization rules to determine the final building cost. Question is what asset class is this? 1250? and how many years and what method of depreciation would you use? I can't see this as commercial property because of it's location. My thoughts are 25 year property SL. Any suggestions on this? Quote Link to comment Share on other sites More sharing options...
Maribeth Posted April 6, 2010 Report Share Posted April 6, 2010 Commerical real estate; 39 years, SL. Maribeth Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 7, 2010 Report Share Posted April 7, 2010 Terry, location has nothing to do with it, it is the USE that determines it. And you said this was an automotive repair buisness. There you have it. It's 1250 business property, so it's 39 years SL. Quote Link to comment Share on other sites More sharing options...
Pacun Posted April 7, 2010 Report Share Posted April 7, 2010 Non-residential Real Estate Property. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 7, 2010 Author Report Share Posted April 7, 2010 Thanks for the replies. You have confirmed my intial take on this. I guess the idea of building the building on your own property that is not zoned commercial is what put the question in my mind. Over thinking it I guess. Pacun I cerntainly knew this was non-residential real estate but thanks anyway. Quote Link to comment Share on other sites More sharing options...
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