pamdory
Level 8
04-17-2021
02:54 PM
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The 27.5 class life is used when the business use of the home is to rent it to someone to use as a residence.
When a taxpayer uses a portion of their home for their Schedule C or F business, that portion is considered nonresidential real property and must use the 39 year life.
Electrical systems are considered a structure of the building unit and it sounds like the work was done to upgrade the entire house's electrical capacity.