Over how many years is the basis of a property typically recovered?

The term "recovery period" accurately refers to the time span over which the basis of a property is typically recovered for tax purposes. This period is critical, as it determines how long taxpayers can recover the costs associated with their property through deductions.

In the context of real estate and tangible property, the recovery period is often defined by the IRS. For residential rental property, the recovery period is 27.5 years, while for non-residential property, it is typically 39 years. This framework helps establish the rate at which property owners can deduct their investment's cost from their taxable income, allowing them to recoup their investment over time.

The other options relate to different aspects of financial recovery or deduction but do not precisely capture the defined duration for recovering property basis as the term "recovery period" does. Amortization pertains more specifically to intangible assets; capital recovery period is not a commonly used term in tax contexts; and depreciation timeline may refer to the conceptual timeframe but lacks the specificity of the recovery period defined by tax authorities.