Why has congress provided shorter cost recovery periods for residential than for nonresidential property?

Expert Solution

Congress has provided shorter cost recovery period for the residential rather than Non residential property because residential property are for self use and they are not for the commercial purpose and the residential property are also intended to not to be sold in the near future so these are provided with high depreciation and shorter cost recovery period because they will be able to recover their cost as they are non commercial in nature.

So, property who are non residential property and generally they are commercial property are having an intention of being sold and being used for the different person in the commercial space so it is not having the luxury of having a shorter cost recovery period as this is intended to be sold and provide a service for income generation so this cannot be having shorter recovery period.

jeff jeffy answered 2 years ago

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