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10270: 4562 - Depreciation of Qualified Indian Reservation Property


Fed Returns Generally

How do I enter depreciation of Qualified Indian Reservation Property?

You may be able to use a reduced life for depreciable assets that are Qualified Indian Reservation Property. Per the IRS, "There are special rules that allow you to use shorter recovery periods to figure your depreciation deduction for qualified property placed in service on an Indian reservation after December 31, 2007 and by December 31, 2020 (Code Sec. 168(j))."

For assets that meet the definition, on the 4562 screen, select I Qualified Indian Reservation Property from the Do not use MACRS % tables field drop list. Help for this field directs you to select M as the Method and provides more information about qualified Indian reservation property.

The reduction in depreciable life is as follows:

Property Class Recovery Period
3-year 2 years
5-year 3 years
7-year 4 years
10-year 6 years
15-year 9 years
20-year 12 years
Non-residential real property 22 years

IRS Q&As (Indian Tribal Governments/FAQs for Indian Tribal Governments regarding Special Depreciation Rules) provide more information on this subject. Also, see Publication 946.


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