Real Estate Depreciation Calculator
Calculate annual depreciation deductions for residential and commercial investment properties
About this calculator
The Real Estate Depreciation Calculator helps property investors determine their annual depreciation deductions for tax purposes. This tool calculates the depreciation allowance for both residential rental properties (27.5-year recovery period) and commercial investment properties (39-year recovery period). By accurately computing these deductions, investors can maximize their tax benefits and improve cash flow from their real estate investments while ensuring compliance with IRS depreciation schedules.
How to use
Enter your property's depreciable basis (purchase price minus land value), select the property type (residential or commercial), and input the placed-in-service date. The calculator will automatically apply the appropriate depreciation method and recovery period to determine your annual depreciation deduction for tax reporting purposes.
Frequently asked questions
What's the difference between residential and commercial property depreciation?
Residential rental properties depreciate over 27.5 years, while commercial properties use a 39-year schedule, resulting in different annual deduction amounts.
How do I determine the depreciable basis of my property?
Subtract the land value from your total purchase price. Only the building and improvements can be depreciated, not the land itself.
Can I depreciate my primary residence?
No, depreciation deductions only apply to investment or business-use properties. Personal residences don't qualify for depreciation deductions.