SECTION 1. PURPOSE

This revenue procedure provides guidance under §§ 13101(b), 13204(a)(3), and 13205 of the Tax Cuts and Jobs Act, Pub. L. No. 115–97, 131 Stat. 2054 (Dec. 22, 2017) (the “TCJA”). Section 13101(b) of the TCJA amended § 179 of the Internal Revenue Code by modifying the definition of qualified real property that may be eligible as § 179 property under § 179(d)(1). Section 13204(a)(3) of the TCJA amended § 168 by (i) requiring certain property held by an electing real property trade or business, as defined in § 163(j)(7)(B), to be depreciated under the alternative depreciation system in § 168(g), and (ii) changing the recovery period under the alternative depreciation system from 40 to 30 years for residential rental property. Section 13205 of the TCJA amended § 168 by requiring certain property held by an electing farming business, as defined in § 163(j)(7)(C), to be depreciated under the alternative depreciation system. This revenue procedure also modifies Rev. Proc. 87–57, 1987–2 C.B. 687, to provide an optional depreciation table for residential rental property depreciated under the alternative depreciation system with a 30-year recovery period, and Rev. Proc. 2018–31, 2018–22 I.R.B. 637, to provide guidance for calculating a § 481(a) adjustment for a change in method of accounting due to a change in the use of depreciable tangible property.