Anyone know depreciation 27 or 39 yrs for mixed use Apartm/Office

[Susan O.]

Apartment and office 50% - 50% building

does anyone know if we have to do 27.5 yrs for residential and the typical 39 years for commercial for depreciation?

Or is it 100% commercial so 39 yrs?

[Yonah Weiss]

Originally posted by @Susan O.:

Apartment and office 50% - 50% building

does anyone know if we have to do 27.5 yrs for residential and the typical 39 years for commercial for depreciation?

Or is it 100% commercial so 39 yrs?

Susan, the definition for depreciation in this case of a mixed-use building actually has to do with the income produced, and not the sqft. split. There is an 80/20 rule. If 80% or more of the income comes from the residential than it isclassified as residential and depreciated over 27.5 years, otherwise it's classified as 39 years.

As per your second question, yes, you can still do cost segregation (accelerating depreciation).