How many years can owners of residential and low-income investment properties depreciate their investment?

The correct answer is based on the IRS guidelines for residential rental properties. Owners of residential and low-income investment properties are allowed to depreciate their investment over a period of 27.5 years. This method of depreciation is applicable specifically to residential real estate, reflecting the useful life expected by the IRS for such properties.

The depreciation period is significant because it allows property owners to recover their investments by deducting a portion of the property's cost each year from their taxable income. This can provide substantial tax relief over the life of the investment.

The other available options reflect depreciation periods for different types of properties. For instance, non-residential properties typically have a longer depreciation period of 39 years, while certain other property types may have shorter periods. However, for residential and low-income investment properties specifically, the IRS has established the 27.5-year frame, making it the right choice in this context.