Residential Rental Property

Residential Rental Property means:
rental units used for dwelling purposes, not of a transient (hotel, motel) nature. For a building to qualify as residential, at least 80% of its income should be derived from dwelling units. This type of property is eligible for a 2772-year life for depreciation purposes, as compared to a 39-year life for nonresidential property. Former IRC (check if this IRC provision is current here) § 168(e)(2).

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.

Description and Definition of Residential Rental Property

Houses or apartment complexes rented primarily for use as dwelling units. At least 80% of the gross income on this type of real estate must come from dwelling units. Under MACRS, depreciation is claimed over 27.5 years under the straight-line method.

Resources

See Also

Further Reading

• Residential Rental Property in the West's Tax Law Dictionary
• Residential Rental Property in “A Dictionary of Taxation”