How is nonresidential real property depreciated if placed in service after May 13, 1993?

Nonresidential real property placed in service after May 13, 1993, is depreciated using the straight-line method over a period of 39 years. This convention is established under the Modified Accelerated Cost Recovery System (MACRS), which outlines how different types of property can be depreciated for tax purposes.

The straight-line method is utilized for nonresidential real property, ensuring that the cost of the property is spread evenly over its useful life. The 39-year period reflects the IRS's assessment of the expected economic life of nonresidential buildings, providing a systematic approach to recovering the cost of the property over time.

In contrast, other options suggesting different time frames, such as 27.5 years or 31.5 years, are applicable to residential rental property, which has a shorter depreciation period, indicating that they do not apply to nonresidential real property placed in service after the specified date. The mention of an accelerated method also doesn't apply here since nonresidential real property typically does not qualify for accelerated depreciation under the MACRS guidelines for its established timeframe.