Property Classification List

3-year property includes:

Note.

Any race horse placed in service after December 31, 2008, and before January 1, 2017, is treated as 3-year property (regardless of the age of the race horse).

• A race horse that is more than 2 years old at the time it is placed in service before January 1, 2009.
• Any horse (other than a race horse) that is more than 12 years old at the time it is placed in service.
• Any qualified rent-to-own property (as defined in section 168(i)(14)).

5-year property includes:

• Automobiles.
• Light general purpose trucks.
• Typewriters, calculators, copiers, and duplicating equipment.
• Any semi-conductor manufacturing equipment.
• Any computer or peripheral equipment.
• Any section 1245 property used in connection with research and experimentation.
• Certain energy property specified in section 168(e)(3)(B)(vi).
• Appliances, carpets, furniture, etc., used in a rental real estate activity.

7-year property includes:

• Office furniture and equipment.
• Railroad track.
• Any motorsports entertainment complex (as defined in section 168(i)(15)) placed in service before January 1, 2017.
• Any natural gas gathering line (as defined in section 168(i)(17)) placed in service after April 11, 2005, the original use of which begins with you after April 11, 2005, and is not under self-construction or subject to a binding contract in existence before April 12, 2005. Also, no AMT adjustment is required.
• Any property that does not have a class life and is not otherwise classified.

10-year property includes:

• Vessels, barges, tugs, and similar water transportation equipment.
• Any single purpose agricultural or horticultural structure (see section 168(i)(13)).
• Any tree or vine bearing fruit or nuts.
• Any qualified smart electric meter property.
• Any qualified smart electric grid system property.

15-year property includes:

• Any municipal wastewater treatment plant.
• Any telephone distribution plant and comparable equipment used for 2-way exchange of voice and data communications.
• Any section 1250 property that is a retail motor fuels outlet (whether or not food or other convenience items are sold there).
• Any qualified leasehold improvement property.
• Any qualified restaurant property.
• Any qualified retail improvement property.
• Initial clearing and grading land improvements for gas utility property.
• Certain electric transmission property specified in section 168(e)(3)(E)(vii) placed in service after April 11, 2005, the original use of which begins with you after April 11, 2005, and is not under self-construction or subject to a binding contract in existence before April 12, 2005.

20-year property includes:

• Farm buildings (other than single purpose agricultural or horticultural structures).
• Municipal sewers not classified as 25-year property.
• Initial clearing and grading land improvements for electric utility transmission and distribution plants.

25-year property is water utility property, which is:

• Property that is an integral part of the gathering, treatment, or commercial distribution of water that, without regard to this classification, would be 20-year property.
• Municipal sewers. This classification does not apply to property placed in service under a binding contract in effect at all times since June 9, 1996.

Residential rental property is a building in which 80% or more of the total rent is from dwelling units.

Nonresidential real property is any real property that is neither residential rental property nor property with a class life of less than 27.5 years.