176 Part Three The Measurement of Taxable Income TABLE 7.1 Recovery Periods for Tangible Business Assets MACRS Recovery Period 3 years 5 years Assets Included Small manufacturing tool, racehorses and breeding hogs special handing devices used in food manufacturing Cars, trucks, buses, hekcopters, computers, typewriters duplicating equipment, breeding and dairy catle, and cargo containers Office furniture and fixtures, railroad cars and locomotives, most machinery and equipment Single-purpose agricultural and horticultural structures, assets used in petroleum refining, vessels, barges, and other water transportation equipment, fruit- or nut-bearing trees and vines Land improvements such as fencing, roads, sidewalks, bridges irrigation systems, and landscaping, telephone distribution plants; pipelines; billboards; and service station buildings Certain farm buildings, municipal sewers Commercial water utility property 7 years 10 years 15 years 20 years 25 years 27.5 years 39 years Residential rental real property (duplexes and apartmet Nonresidential real property (office buildings, factories, and warehouses) Railroad grading or tunnel bore 50 years Dasovery Periods