Final answer:
Under the Tax Cuts and Jobs Act, the Alternative Depreciation System (ADS) requires residential property to be depreciated over a period of 30 years using a straight-line depreciation method.
Step-by-step explanation:
ADS Depreciation Period:
The depreciation period for residential property required by the Tax Cuts and Jobs Act under the Alternative Depreciation System (ADS) is 30 years. Depreciation is a tax deduction in the U.S. that allows a taxpayer to recover the cost of property or assets over time.
The Tax Cuts and Jobs Act introduced new regulations for depreciation, including changes to the Alternative Depreciation System. Under the ADS, residential rental property held by a taxpayer using the ADS must use a straight-line depreciation method over a 30-year period. This is a change from the previous ADS period of 40 years for such property placed in service before 2018. The ADS system is generally used when a more conservative method of depreciation is needed for tax purposes, such as for property used in a business with specific tax circumstances or for certain taxpayers like real estate professionals who may opt for or be required to use ADS.