Property fundamentals
Depreciation Period
27.5 years for residential rentals (IRS standard); 39 years for commercial. Determines annual non-cash depreciation deduction.
Why Depreciation Period matters
Depreciation is the 'phantom expense' that creates tax savings without affecting cash. A $400k property at 80% building = $11,636/yr depreciation deduction, every year for 27.5 years. For a 32%-bracket investor, that's ~$3,700/yr of tax savings = real money.