IRS Logo

Publication 534 (11/2016), Depreciating Property Placed in Service Before 1987

Revised: November 2016


Table of Contents

How To Get Tax Help

If you have questions about a tax issue, need help preparing your tax return, or want to download free publications, forms, or instructions, go to IRS.gov and find resources that can help you right away.

Preparing and filing your tax return.    Find free options to prepare and file your return on IRS.gov or in your local community if you qualify.

  The Volunteer Income Tax Assistance (VITA) program offers free tax help to people who generally make $54,000 or less, persons with disabilities, the elderly, and limited-English-speaking taxpayers who need help preparing their own tax returns. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors.

  You can go to IRS.gov and click on the Filing tab to see your options for preparing and filing your return which include the following.

  
  • Free File. Go to IRS.gov/freefile. See if you qualify to use brand-name software to prepare and e-file your federal tax return for free.

  • VITA. Go to IRS.gov/vita, download the free IRS2Go app, or call 1-800-906-9887 to find the nearest VITA location for free tax preparation.

  • TCE. Go to IRS.gov/tce, download the free IRS2Go app, or call 1-888-227-7669 to find the nearest TCE location for free tax preparation.

  

Getting answers to your tax law questions. On IRS.gov get answers to your tax questions anytime, anywhere.

  • Go to IRS.gov/help or IRS.gov/letushelp pages for a variety of tools that will help you get answers to some of the most common tax questions.

  • Go to IRS.gov/ita for the Interactive Tax Assistant, a tool that will ask you questions on a number of tax law topics and provide answers. You can print the entire interview and the final response for your records.

  • Go to IRS.gov/pub17 to get Pub. 17, Your Federal Income Tax for Individuals, which features details on tax-saving opportunities, tax changes, and thousands of interactive links to help you find answers to your questions. View it online in HTML or as a PDF or, better yet, download it to your mobile device to enjoy eBook features.

  • You may also be able to access tax law information in your electronic filing software.

Getting tax forms and publications.    Go to IRS.gov/forms to view, download, or print all of the forms and publications you may need. You can also download and view popular tax publications and instructions (including the 1040 instructions) on mobile devices as an eBook at no charge. Or, you can go to IRS.gov/orderforms to place an order and have forms mailed to you within 10 business days.

Using direct deposit.   The fastest way to receive a tax refund is to combine direct deposit and IRS e-file. Direct deposit securely and electronically transfers your refund directly into your financial account. Eight in 10 taxpayers use direct deposit to receive their refund. IRS issues more than 90% of refunds in less than 21 days.

Delayed refund for returns claiming certain credits.   Due to changes in the law, the IRS can’t issue refunds before February 15, 2017, for 2016 returns that claim the earned income credit (EIC) or the additional child tax credit (ACTC). This applies to the entire refund, not just the portion associated with these credits.

Getting a transcript or copy of a return.   The quickest way to get a copy of your tax transcript is to go to IRS.gov/transcripts. Click on either "Get Transcript Online" or "Get Transcript by Mail" to order a copy of your transcript. If you prefer, you can:
  • Order your transcript by calling 1-800-908-9946.

  • Mail Form 4506-T or Form 4506T-EZ (both available on IRS.gov).

Using online tools to help prepare your return.   Go to IRS.gov/tools for the following.

Resolving tax-related identity theft issues.   
  • The IRS doesn’t initiate contact with taxpayers by email or telephone to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels.

  • Go to IRS.gov/idprotection for information and videos.

  • If your SSN has been lost or stolen or you suspect you are a victim of tax-related identity theft, visit IRS.gov/id to learn what steps you should take.

Checking on the status of your refund.   
  • Go to IRS.gov/refunds.

  • Due to changes in the law, the IRS can’t issue refunds before February 15, 2017, for 2016 returns that claim the EIC or the ACTC. This applies to the entire refund, not just the portion associated with these credits.

  • Download the official IRS2Go app to your mobile device to check your refund status.

  • Call the automated refund hotline at 1-800-829-1954.

Making a tax payment.   The IRS uses the latest encryption technology to ensure your electronic payments are safe and secure. You can make electronic payments online, by phone, and from a mobile device using the IRS2Go app. Paying electronically is quick, easy, and faster than mailing in a check or money order. Go to IRS.gov/payments to make a payment using any of the following options.
  • IRS Direct Pay: Pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you.

  • Debit or credit card: Choose an approved payment processor to pay online, by phone, and by mobile device.

  • Electronic Funds Withdrawal: Offered only when filing your federal taxes using tax preparation software or through a tax professional.

  • Electronic Federal Tax Payment System: Best option for businesses. Enrollment is required.

  • Check or money order: Mail your payment to the address listed on the notice or instructions.

  • Cash: If cash is your only option, you may be able to pay your taxes at a participating retail store.

What if I can’t pay now?    Go to IRS.gov/payments for more information about your options.
  • Apply for an online payment agreement (IRS.gov/opa) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once you complete the online process, you will receive immediate notification of whether your agreement has been approved.

  • Use the Offer in Compromise Pre-Qualifier (IRS.gov/oic) to see if you can settle your tax debt for less than the full amount you owe.

Checking the status of an amended return.    Go to IRS.gov and click on Where’s My Amended Return? (IRS.gov/wmar) under the “Tools” bar to track the status of Form 1040X amended returns. Please note that it can take up to 3 weeks from the date you mailed your amended return for it show up in our system and processing it can take up to 16 weeks.

Understanding an IRS notice or letter.    Go to IRS.gov/notices to find additional information about responding to an IRS notice or letter.

Contacting your local IRS office.   Keep in mind, many questions can be resolved on IRS.gov without visiting an IRS Tax Assistance Center (TAC). Go to IRS.gov/letushelp for the topics people ask about most. If you still need help, IRS TACs provide tax help when a tax issue can’t be handled online or by phone. All TACs now provide service by appointment so you’ll know in advance that you can get the service you need without waiting. Before you visit, go to IRS.gov/taclocator to find the nearest TAC, check hours, available services, and appointment options. Or, on the IRS2Go app, under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

Watching IRS videos.    The IRS Video portal (IRSvideos.gov) contains video and audio presentations for individuals, small businesses, and tax professionals.

Getting tax information in other languages.    For taxpayers whose native language isn’t English, we have the following resources available. Taxpayers can find information on IRS.gov in the following languages.

  The IRS TACs provide over-the-phone interpreter service in over 170 languages, and the service is available free to taxpayers.

The Taxpayer Advocate Service Is Here To Help You

What is the Taxpayer Advocate Service?

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers and protects taxpayer rights. Our job is to ensure that every taxpayer is treated fairly and that you know and understand your rights under the Taxpayer Bill of Rights.

What Can the Taxpayer Advocate Service Do For You?

We can help you resolve problems that you can’t resolve with the IRS. And our service is free. If you qualify for our assistance, you will be assigned to one advocate who will work with you throughout the process and will do everything possible to resolve your issue. TAS can help you if:

  • Your problem is causing financial difficulty for you, your family, or your business,

  • You face (or your business is facing) an immediate threat of adverse action, or

  • You’ve tried repeatedly to contact the IRS but no one has responded, or the IRS hasn’t responded by the date promised.

How Can You Reach Us?

We have offices in every state, the District of Columbia, and Puerto Rico. Your local advocate’s number is in your local directory and at taxpayeradvocate.irs.gov. You can also call us at 1-877-777-4778.

How Can You Learn About Your Taxpayer Rights?

The Taxpayer Bill of Rights describes 10 basic rights that all taxpayers have when dealing with the IRS. Our Tax Toolkit at taxpayeradvocate.irs.gov can help you understand what these rights mean to you and how they apply. These are your rights. Know them. Use them.

How Else Does the Taxpayer Advocate Service Help Taxpayers?

TAS works to resolve large-scale problems that affect many taxpayers. If you know of one of these broad issues, please report it to us at IRS.gov/sams.

Low Income Taxpayer Clinics

Low Income Taxpayer Clinics (LITCs) serve individuals whose income is below a certain level and need to resolve tax problems such as audits, appeals, and tax collection disputes. Some clinics can provide information about taxpayer rights and responsibilities in different languages for individuals who speak English as a second language. To find a clinic near you, visit IRS.gov/litc or see IRS Publication 4134, Low Income Taxpayer Clinic List.

Appendix

The following tables are for use in figuring depreciation deductions under the ACRS system.

ACRS Percentage Tables Table 1. 15-Year Real Property* (Other Than Low-Income Housing)

Year Month Placed in Service
1 2 3 4 5 6 7 8 9 10 11 12
1st 12.00% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%
2nd 10.0 10.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 12.0
3rd 9.0 9.0 9.0 9.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
4th 8.0 8.0 8.0 8.0 8.0 8.0 9.0 9.0 9.0 9.0 9.0 9.0
5th 7.0 7.0 7.0 7.0 7.0 7.0 8.0 8.0 8.0 8.0 8.0 8.0
                         
6th 6.0 6.0 6.0 6.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0
7th 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
8th 6.0 6.0 6.0 6.0 6.0 6.0 5.0 6.0 6.0 6.0 6.0 6.0
9th 6.0 6.0 6.0 6.0 5.0 6.0 5.0 5.0 5.0 6.0 6.0 6.0
10th 5.0 6.0 5.0 6.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0 5.0
                         
11th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
12th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
13th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
14th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
15th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
                         
16th 1.0 1.0 2.0 2.0 3.0 3.0 4.0 4.0 4.0 5.0
* Placed In Service After 1980 and Before March 16, 1984

Table 2. Low-Income Housing*

Year Month Placed in Service
1 2 3 4 5 6 7 8 9 10 11 12
1st 13.0% 12.0% 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 4.0% 3.0% 2.0% 1.0%
2nd 12.0 12.0 12.0 12.0 12.0 12.0 12.0 13.0 13.0 13.0 13.0 13.0
3rd 10.0 10.0 10.0 10.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0 11.0
4th 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 10.0 10.0 10.0 10.0
5th 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 9.0
                         
6th 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0
7th 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
8th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 6.0 6.0
9th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
10th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
                         
11th 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
12th 4.0 4.0 4.0 5.0 4.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
13th 4.0 4.0 4.0 4.0 4.0 4.0 5.0 4.0 5.0 5.0 5.0 5.0
14th 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 5.0 4.0 4.0
15th 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
                         
16th 1.0 1.0 2.0 2.0 2.0 3.0 3.0 3.0 4.0 4.0
* Placed In Service After 1980 and Before May 9, 1985

Table 3. Low-Income Housing*

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 13.3% 12.2% 11.1% 10.0% 8.9% 7.8% 6.6% 5.6% 4.4% 3.3% 2.2% 1.1%
2nd 11.6 11.7 11.9 12.0 12.1 12.3 12.5 12.6 12.7 12.9 13.0 13.2
3rd 10.0 10.1 10.2 10.4 10.5 10.7 10.8 10.9 11.1 11.2 11.3 11.4
4th 8.7 8.8 8.9 9.0 9.1 9.2 9.3 9.5 9.6 9.7 9.8 9.9
5th 7.5 7.6 7.7 7.8 7.9 8.0 8.1 8.2 8.3 8.4 8.5 8.6
                         
6th 6.5 6.6 6.7 6.8 6.9 6.9 7.0 7.1 7.2 7.3 7.4 7.4
7th 5.7 5.7 5.8 5.9 5.9 6.0 6.1 6.1 6.2 6.3 6.4 6.5
8th 4.9 5.0 5.0 5.1 5.2 5.2 5.3 5.3 5.4 5.5 5.5 5.6
9th 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.7 4.8 4.8
10th 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6
                         
11th 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6
12th 4.5 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6 4.6
13th 4.5 4.5 4.6 4.5 4.6 4.6 4.6 4.6 4.6 4.5 4.6 4.6
14th 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.6 4.6 4.5 4.5 4.5
15th 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5 4.5
                         
16th 0.4 0.7 1.1 1.5 1.9 2.3 2.6 3.0 3.4 3.7 4.1
* Placed In Service After May 8, 1985, and Before 1987

Table 4. 18-Year Real Property*

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 9.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 4.0% 3.0% 2.0% 1.0% 0.4%
2nd 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 10.0 10.0 10.0
3rd 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 9.0 9.0 9.0 9.0
4th 7.0 7.0 7.0 7.0 7.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0
5th 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0
                         
6th 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
7th 5.0 5.0 5.0 5.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
8-12th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
13th 4.0 4.0 4.0 5.0 4.0 4.0 5.0 4.0 4.0 4.0 5.0 5.0
14-17th 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
                         
18th 4.0 3.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
19th 1.0 1.0 1.0 2.0 2.0 2.0 3.0 3.0 3.0 3.0 3.6
* Placed In Service After June 22, 1984, and Before May 9, 1985

Table 5. 18-Year Real Property*

  Month Placed in Service
Year 1 2 3 4 5 6 7 8 9 10–11 12
1st 10.0% 9.0% 8.0% 7.0% 6.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0%
2nd 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 10.0 10.0
3rd 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 9.0 9.0 9.0
4th 7.0 7.0 7.0 7.0 7.0 7.0 8.0 8.0 8.0 8.0 8.0
5th 6.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0 7.0
                       
6th 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
7th 5.0 5.0 5.0 5.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
8-12th 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0
13th 4.0 4.0 4.0 5.0 5.0 4.0 4.0 5.0 4.0 4.0 4.0
14-18th 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0 4.0
                       
19th 1.0 1.0 1.0 2.0 2.0 2.0 3.0 3.0 4.0
* Placed In Service After March 15 and Before June 23, 1984

Table 6. 19-Year Real Property*

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 8.8% 8.1% 7.3% 6.5% 5.8% 5.0% 4.2% 3.5% 2.7% 1.9% 1.1% 0.4%
2nd 8.4 8.5 8.5 8.6 8.7 8.8 8.8 8.9 9.0 9.0 9.1 9.2
3rd 7.6 7.7 7.7 7.8 7.9 7.9 8.0 8.1 8.1 8.2 8.3 8.3
4th 6.9 7.0 7.0 7.1 7.1 7.2 7.3 7.3 7.4 7.4 7.5 7.6
5th 6.3 6.3 6.4 6.4 6.5 6.5 6.6 6.6 6.7 6.8 6.8 6.9
                         
6th 5.7 5.7 5.8 5.9 5.9 5.9 6.0 6.0 6.1 6.1 6.2 6.2
7th 5.2 5.2 5.3 5.3 5.3 5.4 5.4 5.5 5.5 5.6 5.6 5.6
8th 4.7 4.7 4.8 4.8 4.8 4.9 4.9 5.0 5.0 5.1 5.1 5.1
9th 4.2 4.3 4.3 4.4 4.4 4.5 4.5 4.5 4.5 4.6 4.6 4.7
10-19th 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2 4.2
                         
20th 0.2 0.5 0.9 1.2 1.6 1.9 2.3 2.6 3.0 3.3 3.7 4.0
* Placed In Service After May 8, 1985, and Before 1987

Table 7. 18-Year Real Property*

  Month Placed in Service
Year 1–2 3–4 5–7 8–9 10–11 12
1st 5.0% 4.0% 3.0% 2.0% 1.0% 0.2%
2-10th 6.0 6.0 6.0 6.0 6.0 6.0
11th 5.0 5.0 5.0 5.0 5.0 5.8
12-18th 5.0 5.0 5.0 5.0 5.0 5.0
19th 1.0 2.0 3.0 4.0 5.0 5.0
* Placed In Service After June 22, 1984 
If Alternate ACRS Method Elected Over 18-Year Period

Table 8. 18-Year Real Property*

  Month Placed in Service
Year 1 2–3 4–5 6–7 8–9 10–11 12
1st 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.5%
2-10th 6.0 6.0 6.0 6.0 6.0 6.0 6.0
11th 5.0 5.0 5.0 5.0 5.0 5.0 5.5
12-18th 5.0 5.0 5.0 5.0 5.0 5.0 5.0
19th 1.0 2.0 3.0 4.0 5.0 5.0
* Placed In Service After March 15 and Before June 23, 1984 
If Alternate ACRS Method Elected Over 18-Year Period

Table 9. 19-Year Real Property*

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 5.0% 4.6% 4.2% 3.7% 3.3% 2.9% 2.4% 2.0% 1.5% 1.1% 0.7% 0.2%
2-13th 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3 5.3
14-19th 5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2 5.2
20th 0.2 0.6 1.0 1.5 1.9 2.3 2.8 3.2 3.7 4.1 4.5 5.0
* If Alternate ACRS Method Elected Over 19-Year Period

Table 10. 18-Year Real Property*

  Month Placed in Service
Year 1–2 3–6 7–10 11 12
1st 3.0% 2.0% 1.0% 0.4% 0.1%
2-30th 3.0 3.0 3.0 3.0 3.0
31st 2.0 2.0 2.0 2.6 2.9
32-35th 2.0 2.0 2.0 2.0 2.0
36th 1.0 2.0 2.0 2.0
* Placed In Service After June 22, 1984  
If Alternate ACRS Method Elected Over 35-Year Period

Table 11. 18-Year Real Property 1 15-Year Real Property and Low-Income Housing 2

  Month Placed in Service
Year 1–2 3–6 7–12
1st 3.0% 2.0% 1.0%
2-30th 3.0 3.0 3.0
31-35th 2.0 2.0 2.0
36th 1.0 2.0
1 Placed In Service After March 15 and Before June 23, 1984 
2 Placed In Service Before May 9, 1985  
If Alternate ACRS Method Elected Over 35-Year Period

Table 12. Low-Income Housing*

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 2.9% 2.6% 2.4% 2.1% 1.9% 1.7% 1.4% 1.2% 1.0% 0.7% 0.5% 0.2%
2-20th 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9
21-35th 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8
36th 0.3 0.5 0.8 1.0 1.2 1.5 1.7 1.9 2.2 2.4 2.7
* Placed In Service After May 8, 1985 
If Alternate ACRS Method Elected Over 35-Year Period

Table 13. 19-Year Real Property*

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 2.7% 2.5% 2.3% 2.0% 1.8% 1.5% 1.3% 1.1% 0.8% 0.6% 0.4% 0.1%
2-20th 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9 2.9
21-35th 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8
36th 0.2 0.4 0.6 0.9 1.1 1.4 1.6 1.8 2.1 2.3 2.5 2.8
* If Alternate ACRS Method Elected Over 35-Year Period

Table 14. 18-Year Real Property 1 19-Year Real Property 2

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 2.1% 1.9% 1.8% 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.5% 0.3% 0.1%
2-11th 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3
12-45th 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2
46th 0.1 0.3 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.7 1.9 2.1
1 Placed In Service After June 22, 1984 
2 If Alternate ACRS Method Elected Over a 45-Year Period

Table 15. 18-Year Real Property 1 15-Year Real Property and Low-Income Housing 2

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 2.3% 2.0% 1.9% 1.7% 1.5% 1.3% 1.2% 0.9% 0.7% 0.6% 0.4% 0.2%
2-10th 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3 2.3
11-45th 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2
46th 0.3 0.4 0.6 0.8 1.0 1.1 1.4 1.6 1.7 1.9 2.1
1 Placed In Service After March 15 and Before June 23, 1984  
2 Placed In Service After December 31, 1980  
If Alternate ACRS Method Elected Over a 45-Year Period

Table 16. Listed Property Not Used Predominantly (Other Than 18- or 19- Year Real Property)

  Recovery Period
Year 5 12 25
1st 10.0% 4.0% 2.0%
2nd-5th 20.0 9.0 4.0
6th 10.0 8.0 4.0
7th-12th 8.0 4.0
13th 4.0 4.0
14th-25th 4.0
26th 2.0

Table 17. 40-Year Recovery Period (For 18- or 19-Year Listed Property Not Used Predominantly)

  Month Placed in Service  
Year 1 2 3 4 5 6 7 8 9 10 11 12
1st 2.4% 2.2% 2.0% 1.8% 1.6% 1.4% 1.1% 0.9% 0.7% 0.5% 0.3% 0.1%
2-40th 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
41st 0.1 0.3 0.5 0.7 0.9 1.1 1.4 1.6 1.8 2.0 2.2 2.4

Table 18. 3-Year Recovery Property

  Tax year during the lease term that the business percentage decreases to 50% or less
Lease Term 1 2 3 4 5 6 and later
1 Year 3.00%          
2 Years 6.00 1.25%        
3 Years 10.20 6.20 2.25%      
4 Years or more 13.20 10.40 6.50 1.70% 0.50% 0.00%

Table 19. 5-Year Recovery Property

  Tax year during the lease term that the business percentage decreases to 50% or less  
Lease Term 1 2 3 4 5 6 7 8 9 10 11 12
1 Year 2.7%                      
2 Years 5.3 1.2%                    
3 Years 9.9 6.1 1.6%                  
4 Years 14.4 11.1 7.3 2.3%                
5 Years 18.4 15.7 12.4 8.2 3.0%              
6 Years or more 21.8 19.6 16.7 13.5 9.6 5.25% 4.4% 3.6% 2.8% 1.8% 1.0% 0%

Table 20. 10-Year Recovery Property

  Tax year during the lease term that the business percentage decreases to 50% or less
Lease Term 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 Year 2.5%                            
2 Years 5.1 0.6%                          
3 Years 9.8 5.6 1.0%                        
4 Years 14.0 10.3 6.2 1.4%                      
5 Years 17.9 14.5 10.9 6.7 1.8%                    
                               
6 Years 21.3 18.3 15.1 11.4 7.1 2.1%                  
7 Years 21.9 19.0 15.9 12.4 8.4 3.9 2.4%                
8 Years 22.4 19.6 16.7 13.4 9.7 5.5 4.5 2.7%              
9 Years 22.9 20.2 17.4 14.3 10.9 7.0 6.4 5.1 3.0%            
10 Years 23.5 20.9 18.2 15.2 11.9 8.3 8.1 7.2 5.7 3.3%          
                               
11 Years 23.9 21.4 18.8 16.0 12.8 9.3 9.4 8.9 7.7 5.9 3.1%        
12 Years 24.3 21.9 19.3 16.5 13.4 10.1 10.3 10.0 9.3 7.8 5.5 2.9%      
13 Years 24.7 22.2 19.7 16.9 14.0 10.7 11.1 11.0 10.4 9.2 7.4 5.2 2.7%    
14 Years 25.0 22.5 20.1 17.3 14.4 11.1 11.6 11.7 11.3 10.3 8.8 6.9 4.8 2.5%  
                               
15 Years or more 25.3 22.8 20.3 17.5 14.7 11.5 12.0 12.2 11.9 11.1 9.8 8.2 6.5 4.5 2.3%


More Online Publications