Real Estate Depreciation Calculator
Estimate the annual depreciation deduction on a rental or commercial property using IRS MACRS straight-line.
Real estate depreciation
How it works
- Depreciable basis = purchase price − land allocation.
- Residential rental: 27.5 years. Commercial: 39 years.
- First year uses the mid-month convention: (12.5 − placed-in-service month) / 12.
Assumptions
- Straight-line MACRS, no cost segregation or bonus depreciation modeled.
- Improvements after purchase depreciate on their own schedule (not added here).
- Land is never depreciable.
Frequently asked questions
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These calculators provide estimates for general planning only and are not tax, legal, or financial advice. Always verify with a licensed CPA for your specific situation.