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03-01-2011, 10:23 AM
 Junior Member Join Date: Mar 2011 Posts: 5
Form 4562

I'm using "Table C" from the instructions from form 4562. What does Recovery year mean? I'm confused by the year and months columns and rows.

Thanks

03-02-2011, 06:21 AM
 Moderator Join Date: Oct 2010 Posts: 5,254
“I'm using "Table C" from the instructions from form 4562. What does Recovery year mean?”---> I guess it is also depreciable life that is the period of time over which an asset can lawfully be depreciated.
“ I'm confused by the year and months columns and rows.”---> For example, assume that on Oct. 4 2010, you acquired a residential rental property for \$1500,000, of which \$200,000 was allocated to the underlying land. Since the property is residential real property, it is classified as 27.5 year property. Using table C, as you said, the depreciation percentage is 0.758% (Year 1, 10 row and column number), and the depreciation deduction is \$98,540 \$1300,000(\$1,500,000-\$200,000)*0.758%=\$98,540. Depreciation( 2011 thru 2018; I mean 2nd year thru 9th year) on the rental property is \$47,268;\$1,300,000*3.636%=\$\$47,268.

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