Real Estate Depreciation Calculator

Input your property details

Enter your purchase details and we’ll estimate annual depreciation using a 27.5-year schedule for residential rental property. Adjust land value or improvement costs to see how they change your deductions.

Results

Fill in the form to see your basis, annual deduction, and a 5-year snapshot.

Depreciable basis $0 Purchase price + improvements − land value

Annual deduction $0 Based on straight-line schedule

Year-one partial $0 Prorated by months in service

Provide inputs to view a 5-year snapshot.

How this calculator works

This tool estimates straight-line depreciation for rental real estate. It subtracts land value (which is not depreciable) from your purchase price, adds any capital improvements, then divides the depreciable basis over the IRS recovery period. The first-year deduction is prorated based on when the property was placed in service.

For residential rentals, the standard recovery period is 27.5 years. Commercial property uses 39 years. This page mirrors the core flow of our original calculator while adding a clearer explanation of the numbers shown.

Straight-line method

Separates land vs. building

Supports improvements

Prorates first year

5-year preview

Use this calculator for quick planning conversations with your CPA or as a starting point before ordering a cost segregation study. It does not replace professional advice.

Key reminders from the depreciation guide

Land is not depreciable. Allocate a realistic portion of your purchase price to land so you don’t overstate deductions.
Placed-in-service date matters. Your first-year deduction is prorated by the number of months the property is available for rent.
Improvements increase basis. Renovations that extend the life or value of the property get added to basis and depreciated over the same schedule.
Residential vs. commercial timelines. Residential rental property typically uses 27.5 years; commercial property uses 39 years.
Consult a pro. Cost segregation and bonus depreciation can accelerate deductions but require specialist support to execute correctly.

This calculator is for illustration only and doesn’t provide tax, legal, or financial advice. Always confirm deductions with your CPA.

Need help running the numbers?

If you’re exploring a sale, a 1031 exchange, or want to compare cash offers, we can walk you through the depreciation and tax impact before you decide.

Quick walkthrough of your depreciation schedule
Guidance on land allocation and improvements
Next steps for cost segregation studies