Rental Property Depreciation Calculator
Calculate your annual rental property depreciation tax deduction.
Residential properties depreciate over 27.5 years (excluding land value).
Annual Depreciation Deduction
Rental Property Depreciation allows you to deduct the cost of your rental building (not land) over its useful life.
Depreciable Basis = Property Purchase Price + Improvements − Land Value
Annual Depreciation = Depreciable Basis / 27.5 years
Monthly Depreciation = Annual Depreciation / 12
Key rules:
- Residential rental: 27.5-year straight-line depreciation
- Commercial property: 39-year depreciation
- Land cannot be depreciated — only the building/structure
- Land is typically 15–30% of total property value (varies by location)
- Improvements (roof, HVAC, etc.) may have shorter depreciation schedules (5, 7, or 15 years)
Depreciation recapture: When you sell, depreciation taken is taxed at 25% (Section 1250).