Does rental property have to be treated as business to apply qualified special depreciation allowance for its newly purchased appliance and furnitures? Or so long as those property are as follows, special depreciation allowance is allowed?
-Tangible property depreciated under MACRS with a recovery period of 20 years or less.
-Computer software defined in and depreciated under section 167(f)(1) of the Internal Revenue Code.
-Water utility property.
-Qualified film, television, and live theatrical productions, as defined in sections 181(d) and (e) of the Internal Revenue Code.
-A specified plant for which you made the election to apply section 168(k)(5) for the tax year in which the plant is planted or grafted (explained later in Certain Plants Bearing Fruits and Nuts ).
-It is not excepted property (explained later in Excepted Property ).
Also, are there any amount limit on special allowances?
Thank you!