Which term describes the number of years that establishes the property class and recovery period under the General Depreciation System?

The term that describes the number of years that establishes the property class and recovery period under the General Depreciation System is "class life." This term is significant because it identifies the predetermined timeframe over which an asset is expected to be economically useful and can thus be depreciated for tax purposes.

In the context of the General Depreciation System (GDS), assets are categorized into specific classes, each assigned a particular recovery period. These classifications help determine the depreciation schedule and the annual expense that can be reported. Class life is determined based on the type of asset, its intended use, and how long it typically maintains its value.

While property lifespan, asset duration, and depreciation period might seem related to the concept of how long an asset is useful or how depreciation is computed, they do not accurately capture the formal classification system set forth by tax regulations like class life does. Thus, understanding class life is crucial for properly filing taxes and complying with depreciation rules.