Registered Tax Return Preparer RTRP Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The correct recovery period for office furniture and fixtures for tax purposes is five years. This is in accordance with the Modified Accelerated Cost Recovery System (MACRS), where most office furniture and fixtures are classified under a five-year property class.

This classification allows taxpayers to depreciate the cost of these assets over a shorter time frame, which is beneficial for obtaining tax deductions sooner rather than later. Understanding the appropriate recovery periods is crucial for effective tax planning and compliance, as it affects how businesses report their assets and calculate depreciation for tax return purposes.

The choices of three, seven, and ten years do not align with the established depreciation schedule for office furniture and fixtures under current IRS guidelines. Thus, the option identified in the question is not accurate based on the standard practices for depreciation.