A recreational vehicle is provided to employees’ vacation use as a work benefit. For depreciation purposes, would it be considered a 5-year property (automobile), a 7-year property (any property that does not have a class life), or something else?
An automobile is defined as a vehicle which is manufactured primarily for use on public streets, roads, and highways. While an RV can be driven on streets, roads and highways, it is not manufactured primarily for that purpose. The primary purpose of an RV is as living quarter when traveling. Is there a reasoning behind the choice of classifying it as a 5-year property?