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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 53666
Experience:  29 years of experience as a tax, real estate, and business attorney.
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What is the asset life of a new parking lot?

Customer Question

What is the asset life of a new parking lot (was formerly asphalt, is now concrete)? Is this "non-listed property" with an asset life of seven years?

Submitted: 6 years ago.
Category: Tax
Expert:  Richard replied 6 years ago.

If its asphalt, it’s a 20 year depreciable life. If it's concrete, it's a 30 year depreciable life.

Customer: replied 6 years ago.
Does the IRS seriously think that asphalt lasts 20 years and that concrete lasts 30 years?
Expert:  Richard replied 6 years ago.

I understand totally, but in so many cases the suggested depreciable lives rarely match up with the reality. All I can do is provide and suggest useful life for depreciable assets. To me, very little the IRS does makes any sense. I'm sorry!

Customer: replied 6 years ago.
Okay, but I can't even FIND a 30-year asset category on my tax software. What "class" of asset would that be, then?
Expert:  Richard replied 6 years ago.

A parking lot is considered an "Improvement Other Than Buildings"