Depreciation of Foreign Residential Rental Property
Hi,
I'm seeking clarification on the depreciation of foreign residential rental property. I've encountered a discrepancy between what the program shows and what the help center states.
According to the ProSeries:
- Federal (using ADS): Both regular tax and AMT use a 30-year recovery period on the program’s asset entry worksheet.
- California: The program's asset entry worksheet, when using the alternate method, shows a 40-year recovery period for regular tax and a 30-year recovery period for AMT. However, the program's tax help states, "The program sets the AMT recovery period to 40 years for residential rental estate or nonresidential estate."
My questions are:
- Which information is correct: what the program displays or what the help center states?
- What is the definitive rule for depreciating foreign residential rental property for both federal and California taxes (regular and AMT)?
Thank you in advance for your help!
