Depreciation on small park

Is there a rule of thumb for depreciating water sewer lines? Like x dollars per linear foot for example. I know all about the benefits of cost seg study but one of my parks is all TOH’s and may not be worth the cost of a full study. Thanks.

This is a question for your tax advisors.

Off the cuff I’d say when you acquire the MHP the value of the utilities is part of the value of the park less land, so you wouldn’t depreciate them separately. But if you do a big replacement, you’d start depreciating the new utilities at that time.

I think the rule is not a rule of thumb but standardized by the IRS. See IRS publication 946. Publication 946 (2021), How To Depreciate Property | Internal Revenue Service.

I think it’s 20 or 25-year but check and see.