Special Trivia Question for 1/6/2026 (Should You Eat Ice Cream for Breakfast? Deciding Whether to Claim Accelerated Depreciation)

Most real estate property isn’t eligible for accelerated depreciation, but there are some exceptions. Which of these could be depreciated upfront?

A. A new roof
B. A new fence
C. Drywall
D. An elevator
E. B and C

A new fence is considered a qualified land improvement, which has a recovery life of 15 years. Assets must have a recovery life of 20 years or less to be eligible for bonus depreciation.

Drywall is considered “qualified improvement property (QIP).” It has a recovery life of 15 years so also qualifies. To be considered QIP, it must be interior improvements to the property. This is why a new roof isn’t eligible.

While an elevator is an interior improvement, it is specifically singled out as a type of interior improvement that is NOT QIP. As a result, you can’t take accelerated depreciation on it.

Isn’t depreciation fun?