The Internal Revenue Service (IRS) published a revenue procedure that explains how to comply with changes from a 40-year to a 30-year recovery period under the alternative depreciation system (ADS) for certain residential rental property based on a provision of the Consolidated Appropriations Act, 2021. Revenue Procedure (Rev. Proc.) 2021-28 addresses the changes available for certain property placed in service before 2018 that is held by an electing real property trade or business. The 2020 legislation expanded a change made in 2017 tax reform legislation that applied only to property placed in service after 2017. This revenue procedure provides explanations and examples of the changes.

 

https://www.irs.gov/pub/irs-drop/rp-21-28.pdf