27.5 vs 39 Years: How Depreciation Schedules Differ by Property Type
A building depreciates over 27.5 years if 80% or more of its gross rental income comes from dwelling units, and over 39 years if it does not, under a single classification test built into the tax code. Here is how that 80% test works, why a mixed-use building usually lands entirely on one schedule, and what the choice is actually worth in annual deductions.




