In the United States, commercial properties typically undergo depreciation over a longer span (39 years) than residential properties (27.5 years).
There are many tax implications associated with commercial real estate investments. In the United States, commercial properties typically undergo depreciation over a longer span (39 years) than residential properties (27.5 years). This results in smaller annual tax deductions for commercial than residential properties. Selling commercial property would likely mean paying capital gains tax in the year when the property is sold.