14049: Qualified Indian Reservation Property

Qualified property placed in service on an Indian reservation after 1993 and before 2017 have shorter recovery periods. 

Property eligible for the shorter recovery periods are those listed under Property Class above. The property must be used predominantly in the active conduct of a business/trade within an Indian reservation. 

Per the Internal Revenue Bulletin 1998-35:

"Section 45A(c)(7) states that the term "Indian reservation" has the meaning given the term by § 168(j)(6). Section 168(j)(6)(prior to its amendment by the Act) provided that, for purposes of § 168(j), the term "Indian reservation" means a reservation, as defined in either section 3(d) of the Indian Financing Act of 1974, 25 U.S.C. § 1452(d), or section 4(10) of the Indian Child Welfare Act of 1978, 25 U.S.C. § 1903(10). Section 3(d) of the Indian Financing Act of 1974 defines reservation to include "former Indian reservations in Oklahoma.""

See Notice 1998-45 for a further definition of former Indian Reservations. An IRS FAQ is also available for more information. 

See Publication 946, for more information about depreciation.