Details of Public Law 116-260, section 202 , Depreciation of Certain Residential Rental Property over 30-Year Period

California conforms, under the PITL, to IRC section 168(g)(2), relating to the ADS recovery period for residential rental property, as of the specified date of 1/1/2015, but does not conform to the federal change in the recovery period.

California does not conform, under the CTL, to IRC section 168, relating to Modified Accelerated Cost Recovery System (MACRS) depreciation. The CTL has substantially similar language to the pre-1981 ADR deduction. The ADR is based on the “useful life” of depreciable property. As a result, the federal modifications to the recovery periods are not applicable.

20/21 21/22 22/23 23/24 N/A $ (39,000,000) $ (6,900,000) $ (4,200,000)