Overview

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, 2021 (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 drop list. Enter M in the Method field and the correct life for the Qualified Indian Reservation Property in the Life field.

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.