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 a non-cash deduction, not a promised current tax saving. Basis allocation, placed-in-service conventions, personal use, passive-activity, basis, at-risk, and sale rules can change when or whether the modeled deduction reduces tax.
Related terms
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