Depreciation Calculator for Rental Property

Estimate your annual and total depreciation deduction for residential or commercial rental property. See how much you can deduct each year and over the life of the property.

Get Started How It Works

This calculator is for informational purposes only and does not constitute tax or legal advice. Please consult a qualified tax advisor for your specific situation.

Property Details

Property Value ($)

Land Value ($)

Improvements ($)

Placed in Service Year

Years to Calculate

Property Type

How This Calculator Works

This calculator estimates your annual and total depreciation deduction for rental property. It uses the straight-line method, which is standard for U.S. tax purposes.

Inputs: Property value, land value, improvements, placed in service year, years to calculate, and property type (residential or commercial).
Outputs: Depreciable basis, annual depreciation, total depreciation, and recovery period.

Depreciable Basis: The portion of the property value (plus improvements) that can be depreciated. Land value is not depreciable.

Residential: 27.5-year recovery period.
Commercial: 39-year recovery period.

Calculation Steps:

Depreciable Basis = Property Value - Land Value + Improvements
Annual Depreciation = Depreciable Basis / Recovery Period
Total Depreciation = Annual Depreciation × Years Calculated

Note: This tool is for informational purposes only. Actual tax outcomes may vary based on your specific situation. Always consult a qualified tax advisor before making decisions.