Cost segregation for casinos: guest-room furniture, decor and signs in 5 to 7 years, not 39
In a casino hotel the same finish can belong to different schedules depending on what it serves. The IRS's table gives guest-room furniture and hotel decorative millwork 5 years, casino millwork, lighting and signs 7, and an exterior pool 15. This page sorts them by use and shows the row behind each one.
NoCostSeg does not prepare studies for casinos yet. This page is the IRS's table for them, to read.
Beds, dressers and night-tables unique to guest rooms are listed as five-year furniture.
Decorative carpentry unrelated to building operation in casino, theater and showroom areas follows a seven-year row.
Decorative carpentry unrelated to building operation in hotel and retail areas follows the separate five-year row.
Casino-area decorative lighting not needed for building operation is listed with seven-year recreation property.
Exterior pools and their equipment, including attached spas, are listed as 15-year land improvements when built on land.
- $562,222
- depreciation in year one, with the study
- $88,889
- in year one without it
- 41 of 71
- rows in the IRS's table leave the building's schedule
The picture and the first two figures are an illustration: a small hotel with a gaming room, with invented costs, run through the same engine that prepares a study. See how it is worked out.
Where the shorter schedules come from in casinos
Guest-room furniture
Beds, dressers and night-tables unique to guest rooms are listed as five-year furniture.
Casino decorative millwork
Decorative carpentry unrelated to building operation in casino, theater and showroom areas follows a seven-year row.
Hotel decorative millwork
Decorative carpentry unrelated to building operation in hotel and retail areas follows the separate five-year row.
What moves, what stays
Not everything in the building is the building
The IRS's table for casinos puts some components on 5, 7 or 15-year schedules and keeps others with the building. Which one a component gets depends on what it is and how it is attached.
Rows in the IRS table for casinos
71- 5-year
- 20
- 7-year
- 13
- 15-year
- 8
- Stays in the building
- 29
- Land
- 1
- Depends on the facts
- 0
These counts describe rows in the IRS table, not an allocation of your property's cost.
Also moves out of the building
More of what the IRS's table for casinos puts on a shorter schedule, with the row behind each one.
Decorative casino lighting
Casino-area decorative lighting not needed for building operation is listed with seven-year recreation property.
Gaming and showroom signs
Interior signs identifying gaming, theater and showroom activities follow the seven-year signs row.
Exterior pools built on land
Exterior pools and their equipment, including attached spas, are listed as 15-year land improvements when built on land.
Off the building's schedule
What stays with the building
A study that moves these is the kind an examiner picks apart. We leave them on the building's schedule and show the row that says why.
Ornamental suspended ceilings
Decorative metal panels and the suspended ceiling systems concealing building services remain building property.
Structural and general millwork
Door frames, stairways, restroom cabinets and other general building carpentry retain the building period.
Pools within or attached to a building
Pools and related equipment within, on or attached to a building follow the building row rather than the exterior-land row.
Exit-route signs
Signs directing occupants toward exits are building components rather than gaming signs.
Stays with the building
Worked example
A small hotel with a gaming room, year by year
Invented figures, run through the same engine that prepares a real study.
A fictional hotel/casino with guest-room furniture, separate hotel and gaming-area decorative carpentry, casino decorative lighting and an exterior pool built on land.
Illustration- Purchase price
- $8,000,000
- Land
- $1,600,000
- Depreciable basis
- $6,400,000
Guest-room furniture
$180,0005-yearPub. 5653, p. 217Casino decorative carpentry
$60,0007-yearPub. 5653, p. 220Hotel decorative carpentry
$40,0005-yearPub. 5653, p. 220Decorative casino lighting
$50,0007-yearPub. 5653, p. 219Exterior pool and equipment
$150,00015-yearPub. 5653, p. 221
Where the basis goes
- 5-year
- $220,000
- 7-year
- $110,000
- 15-year
- $150,000
- 39-year building
- $5,920,000
Depreciation in the first five tax years
More depreciation in year one
+$473,333
Later years are lower with the study: the same cost, deducted sooner.
See the figures
| Year | With study | Without study |
|---|---|---|
| 2026 | $562,222 | $88,889 |
| 2027 | $151,795 | $164,103 |
| 2028 | $151,795 | $164,103 |
| 2029 | $151,795 | $164,103 |
| 2030 | $151,795 | $164,103 |
Assumed contract date: 2026-01-20. Assumed placed-in-service date: 2026-06-01.
These are depreciation deductions, not tax savings. The engine applies its 100% bonus rate for these dates, assuming the selected components qualify; it uses the half-year convention for short classes and mid-month for the building. The comparison does not apply owner-specific tax limitations.
The property and all costs above are invented for this illustration. Each component is assumed to match its cited row; the remaining basis stays in the building. The allocation and annual figures are calculated by the same depreciation engine used for a study, rather than entered as example results.
From the IRS's guide
How to read the casinos table
Written from the pages cited under each paragraph. Follow a citation to open that page of the IRS's own PDF.
The guide is written for IRS examiners. It is not legal authority; it shows how the IRS itself sorts these components.
A hotel and casino can contain assets that look alike but serve different activities. The casino directive addresses construction costs for the combined property and tells examiners to consider the appropriate costs associated with each asset, not just its name. It also warns against transferring classifications between industries without considering their different facts, directing restaurant assets within a casino to the restaurant guidance.
Location and use are especially visible in the decorative rows. Decorative millwork in a casino, theater or showroom follows the recreation activity class and a seven-year period; comparable decorative carpentry in hotel and retail areas has a five-year entry. Decorative lighting and signs likewise have descriptions tied to the activities they serve. Guest-room beds, dressers and night-tables are separately identified as five-year furniture rather than office furnishings.
An elaborate appearance does not remove an installation from the building. The matrix retains dropped ceilings with ornamental finishes and structural millwork as building property. Pools reveal another boundary: pools within, on or attached to a building have a building-period entry, while exterior pools built on land are treated as land improvements. A useful inventory therefore records which activity a component serves and how it is installed, rather than grouping all themed finishes or recreational facilities together.
The full table
The reference, row by row
All 71 rows from Casino and Gaming Industry Matrix for Recovery Period of Property, including the conditions behind each classification. Open a class to read its rows.
Pub. 5653, pp. 211–2245-year20 rows
Rows that place a component in the 5-year class.
Doors and Door Locks
Pub. 5653, p. 212
(Special lightweight, double action doors installed to prevent accidents in a heavily trafficked area “Eliason”-type door).
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
(Special lightweight, double action doors installed to prevent accidents in a heavily trafficked area “Eliason”-type door). For example, flexible doors, clear curtains, or strip curtains used between stock areas and selling areas.
Electrical Hook-ups (includes duplex, fourplex, junction box, conduit/wiring, and allocation of panels)
Pub. 5653, p. 213
Includes electrical outlets specifically associated to a particular item of machinery or equipment located in Conference Rooms, Guest Rooms, Public Facility areas, Meeting Rooms, and Support Areas, but not in the Casino/Theater area.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes electrical outlets specifically associated to a particular item of machinery or equipment located in Conference Rooms, Guest Rooms, Public Facility areas, Meeting Rooms, and Support Areas, but not in the Casino/Theater area. Examples include equipment in Exercise rooms, ice machines, vending machines, audio visual equipment, televisions (and the riser conduit and wiring), garbage disposals, refrigerators, and workbenches.
Facades – Interior Columns
Pub. 5653, p. 214
Includes finishes on interior columns that are not permanently attached and not intended to be permanent.
Table period: 5 years (57.0 Distributiv e Trades and Services)
Read the full row
Includes finishes on interior columns that are not permanently attached and not intended to be permanent. Not located in the Casino/Theater area.
Facades – Interior – False Balcony
Pub. 5653, p. 214
Finishes generally made of millwork or wrought iron (forged balconies and gates).
Table period: 5 years (57.0 Distributiv e Trades and Services)
Read the full row
Finishes generally made of millwork or wrought iron (forged balconies and gates). Not located in the Casino/Theater area.
Facades – Interior -Storefronts
Pub. 5653, p. 215
Includes false storefronts made primarily of synthetic materials (foam, fiberglass, cast stone, or glass reinforced concrete) that are not permanently attached and not intended to be permanent.
Table period: 5 years (57.0 Distributiv e Trades and Services)
Read the full row
Includes false storefronts made primarily of synthetic materials (foam, fiberglass, cast stone, or glass reinforced concrete) that are not permanently attached and not intended to be permanent. Not located in the Casino/Theater area.
Facades – Interior -Rockscape
Pub. 5653, p. 216
Includes painted ceilings designed on computers, transferred to canvases, and hand-painted with acrylics that are not permanently attached and not intended to be permanent.
Table period: 5 years (57.0 Distributiv e Trades and Services)
Read the full row
Includes painted ceilings designed on computers, transferred to canvases, and hand-painted with acrylics that are not permanently attached and not intended to be permanent. Not located in the Casino/Theater area.
Facades – Interior -Rockscape
Pub. 5653, p. 216
Includes rockscape and decorative stonework that do not function as part of the building and would be considered as non-structural theme elements that function merely as ornamentation.
Table period: 5 years (57.0 Distributiv e Trades and Services)
Read the full row
Includes rockscape and decorative stonework that do not function as part of the building and would be considered as non-structural theme elements that function merely as ornamentation.
Fire Protection Equipment
Pub. 5653, p. 217
Includes special fire detection or suppression systems directly associated with a piece of equipment.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes special fire detection or suppression systems directly associated with a piece of equipment. For example, a fire extinguisher designed and used for protection against a particular hazard created by the business activity.
Floor Covering
Pub. 5653, p. 217
Includes floor covering that is not permanently attached and not intended to be permanent, such as vinyl composition tile (VCT) installed with strippable adhesive, sheet vinyl, and carpeting, but not located in the Casino/Theater area.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes floor covering that is not permanently attached and not intended to be permanent, such as vinyl composition tile (VCT) installed with strippable adhesive, sheet vinyl, and carpeting, but not located in the Casino/Theater area.
Furniture -Guest Room
Pub. 5653, p. 217
Includes furniture unique to guest rooms and distinguishable from office furniture.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes furniture unique to guest rooms and distinguishable from office furniture. For example, beds, dressers, armoires, and night-tables. See also Furniture- Office.
Kitchen Equipment Hook-ups
Pub. 5653, p. 218
Encompasses the electrical distribution system of the kitchen.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Encompasses the electrical distribution system of the kitchen. Refer to the industry directive for Restaurants - Kitchen Equipment Hook-up.
Light Fixtures – Interior
Pub. 5653, p. 219
Includes decorative light fixtures, such as neon lights, table lamps, or track lighting, which are decorative in nature and not necessary for the operation of the building and not located in the Casino/Theater area.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes decorative light fixtures, such as neon lights, table lamps, or track lighting, which are decorative in nature and not necessary for the operation of the building and not located in the Casino/Theater area. In other words, if the decorative lighting were turned off, the other sources of lighting would provide sufficient light for operation of the building. If the decorative lighting is the primary source of lighting, then it is § 1250 property.
Light Fixtures – Exterior
Pub. 5653, p. 219
Removable plant grow lights or removable lighting that highlights only the landscaping or building exterior (but not parking areas or walkways) and does not relate to the maintenance or operation of the building.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Removable plant grow lights or removable lighting that highlights only the landscaping or building exterior (but not parking areas or walkways) and does not relate to the maintenance or operation of the building.
Loading Dock
Pub. 5653, p. 220
Includes items such as compactors, conveyors, hoists and/or balers.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes items such as compactors, conveyors, hoists and/or balers.
Millwork – Decorative
Pub. 5653, p. 220
Includes decorative finish carpentry in the hotel and retail areas.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes decorative finish carpentry in the hotel and retail areas. Examples include detailed crown moldings, lattice work placed over finished walls or ceilings, and cabinets. The decorative millwork serves to enhance the overall décor of the hotel and retail areas and is not related to the operation of the building. Cabinets and counters in a restroom are excluded from this category; see Restroom Accessories.
Pylon Sign -Exterior
Pub. 5653, p. 221
Includes only the sign face and/or message screen and related components.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes only the sign face and/or message screen and related components.
Security Equipment
Pub. 5653, p. 222
Includes electronic article surveillance systems including surveillance cameras, recorders, monitors and related equipment, the primary purpose of which is to minimize theft in the retail areas.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes electronic article surveillance systems including surveillance cameras, recorders, monitors and related equipment, the primary purpose of which is to minimize theft in the retail areas. Does not include the Casino/Theater area.
Signs
Pub. 5653, p. 222
Includes interior signs used to display directories of names or indicate the location of business functions and departments, (registration desk, buffet, retail shops, etc.), but not associated with the Casino/Theater activities.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes interior signs used to display directories of names or indicate the location of business functions and departments, (registration desk, buffet, retail shops, etc.), but not associated with the Casino/Theater activities. Not related to the operation
or maintenance of a building. Also includes exterior signs used to display names, symbols, directions, etc. For pylon signs, includes only the sign face and related dedicated wiring. See also Pylon Sign – Exterior.
Spa Hook-ups
Pub. 5653, p. 224
Includes Jacuzzi and Whirlpools located in the Hotel Spa/Fitness Center.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes Jacuzzi and Whirlpools located in the Hotel Spa/Fitness Center. Does not include spa hook-ups that may be associated with swimming pools or pool equipment. See also Pools & Pool Equipment.
Wall Coverings
Pub. 5653, p. 224
Includes strippable wallpaper and vinyl that causes no damage to the underlying wall or wall surface and located in the hotel and retail areas.
Table period: 5 years (57.0 Distributive Trades and Services)
Read the full row
Includes strippable wallpaper and vinyl that causes no damage to the underlying wall or wall surface and located in the hotel and retail areas. For purposes of this directive, such wallpaper is considered not permanently attached or intended to be permanent.
7-year13 rows
Rows that place a component in the 7-year class.
Electrical Hook-ups (includes duplex, fourplex, junction box, conduit/wiring, and allocation of panels)
Pub. 5653, p. 213
Includes electrical outlets specifically associated to particular items of machinery and equipment located in the Casino area.
Table period: 7 years (79.0 Recreation)
Read the full row
Includes electrical outlets specifically associated to particular items of machinery and equipment located in the Casino area. Includes ATM machines, slot machines, and other gaming related equipment. Also includes all electrical hook-ups associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, 1987-2 CB 674, such as Theater and Showroom.
Facades – Interior Columns
Pub. 5653, p. 214
Includes finishes on interior columns that are not permanently attached and not intended to be permanent.
Table period: 7 years (79.0 Recreatio n)
Read the full row
Includes finishes on interior columns that are not permanently attached and not intended to be permanent. Located in the Casino area. Also includes interior columns associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Facades – Interior – False Balcony
Pub. 5653, p. 214
Finishes generally made of millwork or wrought iron (forged balconies and gates) and located in the Casino area.
Table period: 7 years (79.0 Recreatio n)
Read the full row
Finishes generally made of millwork or wrought iron (forged balconies and gates) and located in the Casino area. Also includes false balconies associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Facades – Interior -Storefronts
Pub. 5653, p. 215
Includes false storefronts made primarily of synthetic materials (foam, fiberglass, cast stone, or glass reinforced concrete) that are not permanently attached and not intended to be permanent.
Table period: 7 years (79.0 Recreatio n)
Read the full row
Includes false storefronts made primarily of synthetic materials (foam, fiberglass, cast stone, or glass reinforced concrete) that are not permanently attached and not intended to be permanent. Located in the Casino area. Also includes storefronts associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Facades – Interior – Painted Ceilings
Pub. 5653, p. 215
Includes painted ceilings designed on computers, transferred to canvases, and hand-painted with acrylics that are not permanently attached and not intended to be permanent and located in the Casino area.
Table period: 7 years (79.0 Recreatio n)
Read the full row
Includes painted ceilings designed on computers, transferred to canvases, and hand-painted with acrylics that are not permanently attached and not intended to be permanent and located in the Casino area. Also includes painted ceilings that are
not permanently attached associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Floor Covering
Pub. 5653, p. 217
Includes floor covering that is not permanently attached and not intended to be permanent, such as vinyl composition tile (VCT) installed with strippable adhesive, sheet vinyl, and carpeting, and located in the Casino area.
Table period: 7 years (79.0 Recreation)
Read the full row
Includes floor covering that is not permanently attached and not intended to be permanent, such as vinyl composition tile (VCT) installed with strippable adhesive, sheet vinyl, and carpeting, and located in the Casino area. Also includes floor covering that is not permanently attached associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Furniture – Office (includes Communi-cation Equipment and Hook-ups)
Pub. 5653, p. 217
Includes desk, chair, credenza, file cabinet, table (whether located in Administrative Areas or Guest Rooms) and other furniture such as workstations.
Table period: 7 years (00.11 Office Furniture and Fixtures)
Read the full row
Includes desk, chair, credenza, file cabinet, table (whether located in Administrative Areas or Guest Rooms) and other furniture such as workstations. Also
includes communication equipment and related hook-ups.
Generators
Pub. 5653, p. 218
Emergency power generators for casino operations.
Table period: 7 years (79.0 Recreation)
Read the full row
Emergency power generators for casino operations. (See Cost Segregation Audit Techniques Guide for allocation examples).
Light Fixtures – Interior
Pub. 5653, p. 219
Includes decorative light fixtures such as chandeliers, wall sconces, down lighting, neon lighting, column lights which are decorative in nature and not necessary for the operation of the building and located in the Casino area plus cost of all wiring and electrical connections associated with these fixtures.
Table period: 7 years (79.0 Recreation)
Read the full row
Includes decorative light fixtures such as chandeliers, wall sconces, down lighting, neon lighting, column lights which are decorative in nature and not necessary for the operation of the building and located in the Casino area plus cost of all wiring and electrical connections associated with these fixtures. Also includes all decorative lighting fixtures associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Millwork -Decorative
Pub. 5653, p. 220
Includes decorative finish carpentry in a Casino area.
Table period: 7 years (79.0 Recreation)
Read the full row
Includes decorative finish carpentry in a Casino area. Examples include detailed crown moldings, lattice work placed over finished walls or ceilings, and cabinets. The decorative millwork serves to enhance the overall décor of the Casino area and is not related to the operation of the building. Cabinets and counters in a restroom are excluded from this category; see Restroom Accessories. Also includes decorative millwork associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Security Equipment
Pub. 5653, p. 222
Includes surveillance cameras, recorders, monitors and related equipment, the primary purpose of which is to surveil gaming activities and to minimize theft in the Casino area.
Table period: 7 years (79.0 Recreation)
Read the full row
Includes surveillance cameras, recorders, monitors and related equipment, the primary purpose of which is to surveil gaming activities and to minimize theft in the Casino area. Also includes surveillance equipment associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Signs
Pub. 5653, p. 222
Includes interior signs used to display gaming related activities such as keno, slots, video poker, etc.
Table period: 7 years (79.0 Recreation)
Read the full row
Includes interior signs used to display gaming related activities such as keno, slots, video poker, etc. Also includes interior signs associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
Wall Coverings
Pub. 5653, p. 224
Includes strippable wall paper and vinyl that causes no damage to the underlying wall or wall surface and located in the Casino area.
Table period: 7 years (79.0 Recreation)
Read the full row
Includes strippable wall paper and vinyl that causes no damage to the underlying wall or wall surface and located in the Casino area. For purposes of this directive, such wallpaper is considered not permanently attached or intended to be permanent. Also includes strippable wall coverings associated with the activities described in Asset Class 79.0 of Rev. Proc. 87-56, such as Theater and Showroom.
15-year8 rows
Rows that place a component in the 15-year class.
Generators
Pub. 5653, p. 218
Depreciable assets, whether such assets are §§ 1245 property or 1250 property, used in the production and/or distribution of electricity with rated total capacity in excess of 500 Kilowatts and/or assets used in the production and/or distribution of steam with rated total capacity in excess of 12,500 pounds per hour for use by the taxpayer in its industrial manufacturing process or plant activity and not ordinarily available for sale to others.
Table period: 15 years (00.4 Industrial Steam and Electric Generation and/or Distribution Systems)
Read the full row
Depreciable assets, whether such assets are §§ 1245 property or 1250 property, used in the production and/or distribution of electricity with rated total capacity in excess of 500 Kilowatts and/or assets used in the production and/or distribution of steam with rated total capacity in excess of 12,500 pounds per hour for use by the taxpayer in its industrial manufacturing process or plant activity and not ordinarily available for sale to others. Does not include buildings and structural components as defined in § 1.48-1(e) of the regulations. See Asset Class 00.4 (Rev. Proc. 87-56). Note* asset class 00.4 includes both §§ 1245 and 1250 property per Rev. Proc. 87-56.
Light Fixtures – Exterior
Pub. 5653, p. 219
Pole mounted or freestanding outdoor lighting system to illuminate sidewalks, parking, or recreation areas.
Table period: 15 years (00.3 Land Improvemen t)
Read the full row
Pole mounted or freestanding outdoor lighting system to illuminate sidewalks, parking, or recreation areas. See also Poles & Pylons. Note* asset class 00.3 Land improvements includes both §§ 1245 and 1250 property per Rev. Proc. 87-56.
Poles & Pylons
Pub. 5653, p. 221
Light poles for parking areas and other poles poured in concrete footings or bolt-mounted for signage, flags, etc.
Table period: 15 years (00.3 Land Improvemen t)
Read the full row
Light poles for parking areas and other poles poured in concrete footings or bolt-mounted for signage, flags, etc. Note* asset class 00.3 Land improvements includes both §§ 1245 and 1250 property per Rev. Proc. 87-56. See also Pylon Sign – Exterior and Light Fixtures – Exterior.
Pools & Pool Equipment
Pub. 5653, p. 221
Includes exterior swimming pools and pool equipment (and spas attached to the swimming pools) that are built on land.
Table period: 15 years (00.3 Land Improvemen t)
Read the full row
Includes exterior swimming pools and pool equipment (and spas attached to the swimming pools) that are built on land. Note* asset class 00.3 Land improvements includes both §§ 1245 and 1250 property per Rev. Proc. 87-56.
Pylon Sign -Exterior
Pub. 5653, p. 221
Pylons made of concrete, brick, wood frame, stucco, or similar materials usually set in the ground or on a concrete foundation, and usually used for signage.
Table period: 15 years (00.3 Land Improvemen t)
Read the full row
Pylons made of concrete, brick, wood frame, stucco, or similar materials usually set in the ground or on a concrete foundation, and usually used for signage. Note* asset class 00.3 Land improvements includes both §§ 1245 and 1250 property per Rev. Proc. 87-56. See also Poles & Pylons
Site Grading & Excavation
Pub. 5653, p. 223
Clearing, grading, excavating and removal costs directly associated with the construction of sidewalks, parking areas, roadways and other depreciable land improvements are part of the cost of construction of the improvements and depreciated over the life of the associated asset.
Table period: 15 years (00.3 Land Improvemen t)
Read the full row
Clearing, grading, excavating and removal costs directly associated with the construction of sidewalks, parking areas, roadways and other depreciable land improvements are part of the cost of construction of the improvements and depreciated over the life of the associated asset. Note* asset class 00.3 Land improvements includes both §§ 1245 and 1250 property per Rev. Proc. 87-56.
Site Utilities
Pub. 5653, p. 223
Storm Piping (for draining the site of rainwater).
Table period: 15 years (00.3 Land Improvemen t)
Read the full row
Storm Piping (for draining the site of rainwater). Note* asset class 00.3 Land improvements includes both §§1245 and 1250 property per Rev. Proc. 87-56.
Site Work Site Work
Pub. 5653, p. 224
Site work includes curbing, paving, general site improvements, fencing, landscaping, roads, sewers, sidewalks, site drainage and all other site improvements not directly related to the building.
Table period: 15 years (00.3 Land Improvemen t) 15 years (00.3 Land Improvemen t)
Read the full row
Site work includes curbing, paving, general site improvements, fencing, landscaping, roads, sewers, sidewalks, site drainage and all other site improvements not directly related to the building. Note* asset class 00.3 Land improvements includes both §§ 1245 and 1250 property per Rev. Proc. 87-56. See Site Utilities for sanitary sewers.
Stays in the building29 rows
These rows stay on a building schedule; the period printed by the table is shown below.
Ceilings
Pub. 5653, p. 211
Dropped or lowered ceilings with decorative finishes (such as ornamental polished gold and copper metal panels suspended from the finished ceiling or glued to soffits or lowered drywall ceiling systems).
Table period: 39 years (40 years for purposes of § 168 (g))
Read the full row
Dropped or lowered ceilings with decorative finishes (such as ornamental polished gold and copper metal panels suspended from the finished ceiling or glued to soffits or lowered drywall ceiling systems). The suspension grids are hung by hanger wires from
hooks or eyes set in the floor above or bottom of the roof and attached to walls with nails or screws. Components such as lighting fixtures and air conditioning registers are placed on the grid. The ceilings conceal plumbing, wiring, sprinkler systems and air conditioning ducts. Includes grid systems where the actual building ceiling above the suspended ceiling can be seen. The actual building ceiling is generally painted a dark color so as to hide the various conduit, wires, and mechanical systems hanging from it.
Doors and Door Locks
Pub. 5653, p. 212
Interior and exterior doors, regardless of decoration, including but not limited to, double opening doors, overhead doors, revolving doors, entrance security gates, roll-up or sliding wire mesh or steel grills and gates, and door hardware (such as doorknobs, closers, kick plates, hinges, locks, automatic openers, etc.).
Table period: 39 years (40 years for purposes of § 168 (g))
Read the full row
Interior and exterior doors, regardless of decoration, including but not limited to, double opening doors, overhead doors, revolving doors, entrance security gates, roll-up or sliding wire mesh or steel grills and gates, and door hardware (such as doorknobs, closers, kick plates, hinges, locks, automatic openers, etc.). Includes hotel guest room computerized door locks. Includes encoders, computers, and other associated hardware of the computerized lock system.
Electrical Hook-ups (includes duplex, fourplex, junction box, conduit/wiring, and allocation of panels)
Pub. 5653, p. 212
Includes electrical outlets of general applicability and accessibility located in Accounting and Administrative Offices, Ballrooms, “Back of House” areas, Pre-function areas, and Support areas (such as shop areas, engineering, and construction offices).
Table period: 39 years (40 years for purposes of § 168 (g))
Read the full row
Includes electrical outlets of general applicability and accessibility located in Accounting and Administrative Offices, Ballrooms, “Back of House” areas, Pre-function areas, and Support areas (such as shop areas, engineering, and construction offices). Includes but is not limited to outlets connected to copy machines, fax machines, personal computers, break rooms, coffee rooms, lounges, etc.
Electrical Hook-ups (includes duplex, fourplex, junction box, conduit/wiring, and allocation of panels)
Pub. 5653, p. 212
Includes electrical outlets located in hotel guest rooms and guest bathrooms of general applicability and accessibility (includes bathroom GFI outlet).
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes electrical outlets located in hotel guest rooms and guest bathrooms of general applicability and accessibility (includes bathroom GFI outlet).
Exit Signs
Pub. 5653, p. 213
Signs posted along exit routes that indicate the direction of travel to the nearest exit.
Table period: 39 years (40 years for purposes of § 168 (g))
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Signs posted along exit routes that indicate the direction of travel to the nearest exit. These signs typically read "EXIT" and may have distinctive colors, illumination, or arrows indicating the direction to the exit.
Facades – Exterior
Pub. 5653, p. 213
Decorative exterior wall covering of the hotel/casino complex to help create the theme for the hotel/casino complex.
Table period: 39 years (40 years for purposes of § 168 (g))
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Decorative exterior wall covering of the hotel/casino complex to help create the theme for the hotel/casino complex. Generally, consists of a synthetic plaster, or stucco, that is cemented, or in some cases, bolted on in the form of a panel, to the frames of the exterior walls of the buildings.
Facades – Interior Columns
Pub. 5653, p. 214
Includes finishes on interior columns that are affixed with permanent adhesive or nailed or screwed in place.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes finishes on interior columns that are affixed with permanent adhesive or nailed or screwed in place. Examples include marble tile, millwork and other coverings cemented, mudded, or grouted to the column.
Facades – Interior -Storefronts
Pub. 5653, p. 214
Includes the framework, sheetrock, or any other component that comprises the framing of the storefront walls.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes the framework, sheetrock, or any other component that comprises the framing of the storefront walls. Includes storefronts made primarily of synthetic materials (foam, fiberglass, cast stone, or glass reinforced concrete) that are affixed with permanent adhesive or nailed or screwed in place. Also includes costs relating to the exposed millwork, trim molding and lining around doors, windows, and baseboards. See also Wall Coverings and Millwork.
Facades – Interior – Painted Ceilings
Pub. 5653, p. 215
Includes painted ceilings applied with spray guns and brushes (regardless of theme or design).
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes painted ceilings applied with spray guns and brushes (regardless of theme or design).
Facades – Interior – Painted Ceilings
Pub. 5653, p. 215
Includes custom painted ceilings designed on computers, transferred to canvases, and hand-painted with acrylics (fire-retardant materials).
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes custom painted ceilings designed on computers, transferred to canvases, and hand-painted with acrylics (fire-retardant materials).
Facades – Interior -Rockscape
Pub. 5653, p. 216
Includes rock finishes made of synthetic materials (such as interior fountains containing waterproofed liners and molded rockscape features) and decorative stonework embedded in walls that are an integral part of a buildings structural shell.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes rock finishes made of synthetic materials (such as interior fountains containing waterproofed liners and molded rockscape features) and decorative stonework embedded in walls that are an integral part of a buildings structural shell. Includes non-load bearing rockscape and decorative stonework embedded in walls (regardless of height) that divide or create rooms or provide traffic control where the rockscape and stonework cannot be 1) readily removed and remain in substantially the same condition after removal as before, or 2) moved and reused, stored, or sold in its entirety.
Fire Protection & Alarm Systems
Pub. 5653, p. 216
Includes sensing devices, computer controls, sprinkler heads, piping or plumbing, pumps, visual and audible alarms, alarm control panels, heat and smoke detection devices, fire escapes, fire doors, emergency exit lighting and signage, and wall mounted fire extinguishers necessary for the protection of the building.
Table period: 39 years (40 years for purposes of § 168 (g)
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Includes sensing devices, computer controls, sprinkler heads, piping or plumbing, pumps, visual and audible alarms, alarm control panels, heat and smoke detection devices, fire escapes, fire doors, emergency exit lighting and signage, and wall mounted fire extinguishers necessary for the protection of the building.
Floor Covering
Pub. 5653, p. 217
Includes floor covering that is affixed with permanent adhesive or nailed or screwed in place.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes floor covering that is affixed with permanent adhesive or nailed or screwed in place. Examples include ceramic or quarry tile, marble, paving brick, most vinyl coverings, and other coverings cemented, mudded, or grouted to the floor; epoxy or sealers; and wood flooring.
Floors
Pub. 5653, p. 217
Includes concrete slabs and other floor systems.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes concrete slabs and other floor systems. Floors include special treatments applied to or otherwise a permanent part of the floor. For example, "super flat" finish, sloped drainage basins, raised perimeter, serving line curb, or cooler, freezer, and garbage room floors.
Generators
Pub. 5653, p. 218
Emergency power generators for building related operations (emergency/safety systems).
Table period: 39 years (40 years for purposes of § 168 (g))
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Emergency power generators for building related operations (emergency/safety systems).
Light Fixtures – Interior
Pub. 5653, p. 218
Includes lighting such as recessed and lay-in lighting, night lighting, and exit lighting, as well as decorative lighting fixtures that provide substantially all the artificial illumination (primary source of lighting).
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes lighting such as recessed and lay-in lighting, night lighting, and exit lighting, as well as decorative lighting fixtures that provide substantially all the artificial illumination (primary source of lighting). Includes guest room lighting, wall sconces (bathroom, guest room, and hallway), hallway chandeliers, and all electrical connections associated with these fixtures,
such as power junction boxes, riser conduit, and wiring.
Light Fixtures – Exterior
Pub. 5653, p. 219
Exterior lighting (whether decorative or not) to the extent that the lighting relates to the maintenance or operation of the building.
Table period: 39 years (40 years for purposes of § 168 (g))
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Exterior lighting (whether decorative or not) to the extent that the lighting relates to the maintenance or operation of the building. This category includes building mounted lighting to illuminate walkways, entrances, parking, etc.
Loading Dock
Pub. 5653, p. 219
Includes bumpers, permanently installed dock levelers, plates, seals, lights, canopies, and overhead doors used in the receiving and shipping of merchandise.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes bumpers, permanently installed dock levelers, plates, seals, lights, canopies, and overhead doors used in the receiving and shipping of merchandise.
Millwork – General Building or Structural
Pub. 5653, p. 220
Includes millwork that is made of finished wood for example, doors and frames, window frames, sashes, porch work, mantels, panel work, stairways, and special woodwork.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes millwork that is made of finished wood for example, doors and frames, window frames, sashes, porch work, mantels, panel work, stairways, and special woodwork. Includes pre-built wooden items brought to the site for installation and items constructed on site such as restroom cabinets, door jambs, moldings, trim, etc.
Millwork – General Building or Structural
Pub. 5653, p. 220
Corner Guards and Wall Guards (includes guards made of stainless steel, e.g., diamond plate)
Table period: 39 years (40 years for purposes of § 168 (g))
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Corner Guards and Wall Guards (includes guards made of stainless steel, e.g., diamond plate)
Pools & Pool Equipment
Pub. 5653, p. 221
Includes swimming pools and pool equipment (and spas attached to the swimming pools) that are contained within, on, or attached to a building.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes swimming pools and pool equipment (and spas attached to the swimming pools) that are contained within, on, or attached to a building.
Restroom-Accessories
Pub. 5653, p. 221
Includes paper towel dispensers, electric hand dryers, towel racks or holders, cup dispensers, purse shelves, toilet paper holders, soap dispensers or holders, lotion dispensers, sanitary napkin dispensers and waste receptacles, coat hooks, handrails, grab bars, mirrors, shelves, vanity cabinets, counters and ashtrays and other items generally found in public restrooms that are built into or mounted on walls or partitions.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes paper towel dispensers, electric hand dryers, towel racks or holders, cup dispensers, purse shelves, toilet paper holders, soap dispensers or holders, lotion dispensers, sanitary napkin dispensers and waste receptacles, coat hooks, handrails, grab bars, mirrors, shelves, vanity cabinets, counters and ashtrays and other items generally found in public restrooms that are built into or mounted on walls or partitions.
Restroom Partitions
Pub. 5653, p. 221
Includes shop made and standard manufacture toilet partitions, typically metal, but may be plastic or other materials.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes shop made and standard manufacture toilet partitions, typically metal, but may be plastic or other materials.
Security Equipment
Pub. 5653, p. 222
Includes security equipment for the protection of the building and its contents, including the building exterior and grounds, from theft or vandalism and protection of employees and guests from assault.
Table period: 39 years (40 years for purposes of § 168 (g)
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Includes security equipment for the protection of the building and its contents, including the building exterior and grounds, from theft or vandalism and protection of employees and guests from assault. Examples include security cameras, recorders, monitors, and related equipment (including those located in the elevator and elevator lobbies); building exterior and interior motion detectors; security lighting; alarm systems; security systems and related junction boxes, wiring, and conduit).
Signs
Pub. 5653, p. 222
Exit signs, restroom identifiers, room numbers, and other signs relating to the operation or maintenance of a building.
Table period: 39 years (40 years for purposes of § 168 (g))
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Exit signs, restroom identifiers, room numbers, and other signs relating to the operation or maintenance of a building. See also Exit Signs.
Site Grading & Excavation
Pub. 5653, p. 223
Clearing, grading, excavating and removal costs directly associated with the construction of buildings and building components are part of the cost of construction of the building and depreciated over the life of the building.
Table period: 39 years (40 years for purposes of § 168 (g))
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Clearing, grading, excavating and removal costs directly associated with the construction of buildings and building components are part of the cost of construction of the building and depreciated over the life of the building.
Site Utilities
Pub. 5653, p. 223
Systems that are used to distribute utility services from the property line to the casino complex.
Table period: 39 years (40 years for purposes of § 168 (g)
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Systems that are used to distribute utility services from the property line to the casino complex. Includes water, sanitary sewers, gas, and electrical services.
Spa Hook-ups
Pub. 5653, p. 224
Includes Jacuzzi, Whirlpools, and bathtubs located in Guest Rooms and Suites.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes Jacuzzi, Whirlpools, and bathtubs located in Guest Rooms and Suites.
Wall Coverings
Pub. 5653, p. 224
Includes interior and exterior paint; ceramic or quarry tile, marble, stone, brick, and other finishes affixed with mortar, cement, or grout; paneling, wainscoting and other wood finishes affixed with nails, screws, or permanent adhesives; and sanitary kitchen wall panels such as fiberglass, stainless steel, and plastic wall panels.
Table period: 39 years (40 years for purposes of § 168 (g))
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Includes interior and exterior paint; ceramic or quarry tile, marble, stone, brick, and other finishes affixed with mortar, cement, or grout; paneling, wainscoting and other wood finishes affixed with nails, screws, or permanent adhesives; and sanitary kitchen wall panels such as fiberglass, stainless steel, and plastic wall panels.
Land1 row
Land is not depreciable.
Site Grading & Excavation
Pub. 5653, p. 223
Non-depreciable land preparation costs, in general, include the one-time cost of demolition, clearing and grubbing, blasting, site stripping, fill or excavation, dewatering, and grading to allow development of land.
Table period: Land
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Non-depreciable land preparation costs, in general, include the one-time cost of demolition, clearing and grubbing, blasting, site stripping, fill or excavation, dewatering, and grading to allow development of land. Clearing and grubbing is the removal of debris, brush, trees, etc. from the site. Stripping is the removal of the topsoil to provide a stable surface for site and building improvements. The grading of land involves moving soil for the purpose of producing a more level surface to allow development of the land. These costs would not have to be incurred again if the building was repaired, rebuilt, or even torn down and replaced with some other type of building.
Depends on the facts0 rows
These rows give alternatives, instructions or no definite recovery period.
No rows in this group.
Questions about casinos
A closer reading
The cases owners and preparers ask about most, answered from the table, with the page behind each answer.
How a component list becomes a studyWhy can similar decorative carpentry have different periods?
The casino-area decorative-millwork row uses the seven-year recreation class, including theater and showroom activities. The separate hotel and retail decorative-millwork row gives a five-year period, with both descriptions excluding building-operation carpentry.
Does the pool's location matter?
Pools within, on or attached to a building are listed with a 39-year building period. Exterior pools built on land, together with their equipment and attached spas, have a separate 15-year land-improvement row.
Does an ornamental ceiling qualify as theme décor?
The ceiling entry expressly covers decorative dropped and lowered ceilings, including ornamental metal finishes. It retains those ceiling systems in the building class even where the ceiling above remains visible.
Which matrix applies to a restaurant inside the casino?
The casino introduction refers restaurant assets to the restaurant industry directive. It explains that classifications based on one industry's general fact patterns may not apply to another industry.
Is the casino table binding tax law?
This memorandum supplies recommendations for examination of hotel/casino construction costs alongside other depreciation principles. It explicitly disclaims status as an official pronouncement of law or of the Service's position.
Other property types
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