What is the recovery period for non-residential real property?

The recovery period for non-residential real property is indeed 39 years. This period reflects the time over which the IRS allows the cost of non-residential real estate, such as office buildings and retail stores, to be depreciated for tax purposes.

The choice of 39 years aligns with the Modified Accelerated Cost Recovery System (MACRS) rules established for the depreciation of non-residential real properties placed into service after May 12, 1993. Understanding this period is crucial for tax preparation tasks involving depreciation calculations, as it influences the annual deductions a taxpayer can claim.

Other options pertain to different types of property; for instance, 27.5 years applies to residential rental property, while longer periods like 45 or 50 years may relate to certain specialized property considerations not typically encountered in standard non-residential contexts.