# Fenlark Camp financial assumptions

Fenlark Camp is a fictional $2,400,000 owner-operated campground with 18 RV sites, three permanent two-bedroom rental cabins and a bathhouse, reception and laundry building. Land has a separate $700,000 allocation. The $1,700,000 depreciable allocation assumes full business use, acquisition February 18, 2026 and placement in service June 15, 2026. These are illustrative acquisition allocations, not an appraisal or completed engineering study.

## Property and recovery periods

The park owns the $105,000 campsite water network, $125,000 sewer network and $120,000 power network. These networks are assumed to use 15-year land-improvement treatment. Publication 946 Table B-1 class 00.3 directly names sewers; the water and power treatment also depends on the example's stated function. This example draws the line at what the lines serve: the lines end at visitor-owned RV pads, not buildings. Water and electricity are purchased and included with campsite rental fees. No utility-sales business, treatment plant, municipal sewer or utility-company-owned lines are assumed. General building services have separate allocations on the building schedule.

The bathhouse's $55,000 fixed plumbing fixtures are assumed to use 39 years. Toilets, showers, sinks, fixed vanities and ordinary water and waste connections serve the building's sanitation function. Treasury regulation 1.48-1(e)(2) specifically identifies plumbing and plumbing fixtures as structural components. Separately reviewing fixtures does not itself give them a shorter recovery period. The $45,000 cabin bathrooms follow the same distinction.

Permanent foundations, floors, walls, windows, fixed cabinets and counters, attached porches, ordinary electrical supply, comfort HVAC and roofs are assumed to use 39 years. The cabins provide transient lodging rather than dwelling-unit rentals. No qualified improvement property or section 179 treatment is assumed. The fixed cabinets provide ordinary kitchen, reception and bathroom functions rather than detachable decorative displays.

Removable guest beds, seating, kitchen appliances, guest laundry machines and the integrated retail ice and water vending unit are assumed to use the 5-year service-business class 57.0. The vending machine dispenses retail portions; no separate industrial ice plant or water-utility business is assumed. Booking computers and payment equipment are assumed to use the 5-year classes 00.12 and 57.0, respectively. Administrative office desks and seating are assumed to use class 00.11 at 7 years.

Roads, RV pads, detached cabin parking, independent stormwater drainage, retaining walls that do not support buildings, site fencing, detached walks and fire rings, planting and permanent site lighting are assumed to use 15 years under class 00.3. The picnic tables have permanently embedded concrete footings and are assumed to use the same site-improvement class. Loose movable guest tables would have different facts. The camp name is applied directly to a permanent monument; no separate removable or electronic advertising face has an allocation.

Land, existing trees, ordinary permanent clearing and grading, visiting vehicles, goodwill, inventory and bookings have no depreciation in these rows. Grading directly associated with roads or pads is included only with those specific improvements. The site is tree-lined, with maintained grass and leaf-litter ground beyond it.

Publication 5653 provides guidance for examiners, not law. None of its industry tables specifically addresses RV parks, warehouses or self-storage facilities. Its structural, permanence and functional-use distinctions support this example by analogy. The recovery-period classes come from Publication 946 Tables B-1 and B-2.

## Allocation

| Component | Basis | Recovery period |
|---|---:|---|
| Campsite water hookups | $105,000 | 15 years |
| Campsite sewer hookups | $125,000 | 15 years |
| Campsite power pedestals | $120,000 | 15 years |
| Loop road and entry parking | $220,000 | 15 years |
| RV pads and cabin parking | $160,000 | 15 years |
| Stormwater and swales | $70,000 | 15 years |
| Bathhouse slab and floors | $35,000 | 39 years |
| Bathhouse and office walls | $120,000 | 39 years |
| Bathhouse plumbing fixtures | $55,000 | 39 years |
| Cabin floors and porches | $55,000 | 39 years |
| Cabin walls and windows | $170,000 | 39 years |
| Cabin bathrooms | $45,000 | 39 years |
| Cabin cabinets and counters | $25,000 | 39 years |
| Cabin beds and seating | $36,000 | 5 years |
| Cabin kitchen appliances | $18,000 | 5 years |
| Building power and lighting | $20,000 | 39 years |
| Building comfort HVAC | $20,000 | 39 years |
| Office desk and seating | $14,000 | 7 years |
| Booking computer and payment | $12,000 | 5 years |
| Guest laundry equipment | $22,000 | 5 years |
| Ice and water vending | $45,000 | 5 years |
| Retaining walls | $35,000 | 15 years |
| Site fencing and gates | $30,000 | 15 years |
| Picnic court and fire rings | $25,000 | 15 years |
| Anchored picnic tables | $18,000 | 15 years |
| Landscape beds and planting | $40,000 | 15 years |
| Site lights and camp sign | $25,000 | 15 years |
| Cabin and bathhouse roofs | $35,000 | 39 years |
| **Total depreciable basis** | **$1,700,000** | |

Basis by class: 5 years $133,000; 7 years $14,000; 15 years $973,000; 39-year building $580,000. The short-life allocation is 65.88 percent of depreciable basis, reflecting the campsite networks and land improvements in this campground.

## Year-one depreciation

The year-one deduction is **$1,128,055.56 with 100 percent bonus** or **$85,305.56 without bonus**. Both include $8,055.56 ordinary building depreciation. The no-bonus calculation uses unrounded GDS formulas: 20 percent on 5-year property, 1/7 on 7-year property and 5 percent on 15-year property, plus June mid-month depreciation of 6.5/468 on the buildings. No fourth-quarter additions are assumed.

Eligible short-life assets are assumed to qualify for 100 percent additional first-year depreciation under the post-January 19, 2025 acquisition rules, with no election out. Actual ownership, use and elections determine eligibility. The amounts are deductions. No tax rate or cash benefit is illustrated.

## Primary sources

- [IRS Publication 946](https://www.irs.gov/pub/irs-pdf/p946.pdf), printed pages 98-99 and 108, Tables B-1 and B-2; classes 00.11, 00.12, 00.3 and 57.0.
- [IRS Publication 5653](https://www.irs.gov/pub/irs-pdf/p5653.pdf), printed pages 217, 219, 221 and 276; general plumbing, guest and office furniture, exterior lighting and permanent restroom accessories.
- [Treasury regulation 1.48-1](https://www.ecfr.gov/current/title-26/section-1.48-1), paragraphs (c) and (e); personal property, buildings and structural components.
- [IRS Publication 527](https://www.irs.gov/publications/p527), transient lodging and residential rental property distinction.
- [IRS Notice 2026-11](https://www.irs.gov/pub/irs-drop/n-26-11.pdf), additional first-year depreciation.