TaxGuyBill
Level 15
12-29-2020
12:42 PM
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Sorry, I hit the button too soon, I wasn't finished.
But it is not merely whether or not it is §1250 property or not. Nonresidential Property is defined in §168 as:
The term “nonresidential real property” means section 1250 property which is not—
(i)
(ii)
So if it has a class life of less than 27.5 years, it would not be "Nonresidential Real Property".
You did call it a "trailer", which does have a class life of less than 27.5 years. (See Revenue Procedure 87-56 and/or the listing in Publication 946). Personally, I think the way you described the property it does not seem to be a "trailer" in the sense of those categories (seems to apply to the things that vehicles tow), but if you wanted to be aggressive, that would be your basis.
So I would still use 39 years and no Bonus, but if you think it really fits the category of a "trailer", you have that option.