For property obtained after 1994, what is the specified allowable cost recovery period for owner-occupied single-family residential income property?

The correct answer is that the specified allowable cost recovery period for owner-occupied single-family residential income property, obtained after 1994, is indeed 27.5 years. This period is established by the Internal Revenue Service (IRS) and applies specifically to residential rental property.

For tax purposes, this means that the cost of the property is depreciated over this span, allowing property owners to reduce their taxable income by a defined amount each year. The 27.5-year rule reflects the recognition that residential properties generally have a longer useful life compared to commercial properties, which have a recovery period of 39 years.

The other options presented—15 years, 39 years, and "None of the above"—do not match the established federal guideline for home depreciation. Therefore, it is essential for anyone involved in real estate, particularly in the context of tax preparation, to accurately understand this recovery period to ensure compliance and optimal financial planning.