Depreciation Calculator
Calculate straight-line depreciation for rental property.
Inputs
Depreciable Basis
$0
Annual Depreciation
$0
Accumulated
$0
Depreciation Schedule
| Year | Depreciation | Accumulated | Remaining |
|---|
How to Use This Depreciation Calculator
Our free depreciation calculator computes your annual depreciation deduction for rental properties using the IRS-required MACRS method. Enter your property details for a complete depreciation schedule.
Rental property depreciation spreads the cost of your property (excluding land) over 27.5 years. This non-cash deduction reduces taxable rental income, significantly improving your after-tax returns.
The calculator generates a year-by-year depreciation schedule showing your deduction for each year of ownership. Use this for tax planning and when filing your annual return.
Related Topics
Frequently Asked Questions about Rental Property Depreciation
How do I calculate depreciation on a rental property?
Divide the property's cost (excluding land) by 27.5 years for residential property using straight-line method. A $300,000 property with $50,000 land value: $250,000/27.5 = $9,091/year depreciation.
What is the depreciation period for rental property?
Residential rental property: 27.5 years. Commercial property: 39 years. Both use the Modified Accelerated Cost Recovery System (MACRS).
Can I depreciate a property I live in?
No, you cannot depreciate your primary residence. Only rental or investment properties qualify for depreciation deductions.
What is the difference between MACRS and straight-line?
MACRS is the IRS-required method for real estate, using straight-line over 27.5 years for residential property. It determines your annual depreciation deduction.
What happens to depreciation when I sell?
You must recapture depreciation — pay tax on previously claimed depreciation at 25%. This is called depreciation recapture and applies even if you didn't claim depreciation.
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