Manufactured Housing Community - Depreciation

[Brendan Hula]

Hello BP Community!

I am working to acquire a portfolio of manufactured housing communities and have a few questions regarding depreciation I was hoping to find answers to or be pointed in the right direction. My questions are:

1. Other than the land component, is the infrastructure at the community (roads, pads, water & sewer lines, etc.) eligible for depreciation over a 15 year period? Would Park Owned Homes qualify as personal property and be depreciable over a 5 year period?

2. If the above is true, then would these items also qualify for the Bonus Depreciation rules and be 100% depreciable in year 1?

3. What are the allowable deduction limits? If the year 1 Bonus Deprecation exceeds the deduction limit are you allowed to carry forward these deductions in subsequent years until they are exhausted?

4. We have a group of investors, I'm assuming the depreciation benefits can be passed-through to this group in order to offset our cash distributions. Is that correct?

Thank you,

Brend