The latest revamping of our tax law has once again made modifications to the tax consequence of owning real estate. The depreciation period for non-residential properties has been stretched from 30.5 to 39.5 years, thus limiting the amount that can be depreciated on a yearly basis. Fortunately the depreciation period was not changed for residential real estate (houses and apartments). Currently these properties are depreciated over 27.5 years. Although this may make apartments look even more attractive to investors from an investment basis, the difference in depreciation years makes approximately a .1% difference in the overall return on the property. Currently the change in the tax law only effects real estate purchased after May of 1993.