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.
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.
Note: The accelerated depreciation of property on an Indian reservation will not apply to property placed in service after 12/31/2013.