itonewbie
Level 15
02-19-2020
09:06 PM
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@RESIPSA123Where did you see the Rev. Proc.? Would be great if you could share the citations for reference (I mean that in a respectful way).
I am with @Terry53029 and @IRonMaN that septic system has a class life of 39 years on the basis it is a necessary structural component relating to the operation or maintenance of a building as defined under §1.48-1(e). In fact, that has consistently been the IRS position. Caselaw also supports that and considers whether the asset in question is (1) accessory to a business, (2) permanent, or (3) "ornamentation", taking into account the type of building of which the asset is a part. It should not, therefore, be treated as a land improvement.
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