Rental Property Depreciation Calculator

27.5-year residential schedule — straight-line, MACRS, or bonus depreciation

What is this? This calculator shows the annual depreciation deduction for residential rental property over its 27.5-year useful life. It generates a complete year-by-year depreciation schedule and calculates your tax savings at your marginal tax rate. Includes straight-line, MACRS accelerated, and 100% bonus depreciation options.

Who it's for: Landlords, real estate investors, and rental property owners who want to maximize tax deductions and understand the tax benefits of depreciation.

Property Details

Building Value ($)

Land Value (not depreciable) ($)

Year Placed in Service

Your Marginal Tax Rate (%)

Depreciation Method

Depreciation Schedule

Year	Rate	Depreciation	Remaining Basis

Summary

Depreciable Basis

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Annual Depreciation

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Year 1 Tax Savings

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Total Depreciation

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Lifetime Tax Savings

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End of Schedule

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Cumulative Tax Savings After 5 Years

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📋 Depreciation Methods Explained:
Straight-Line: Equal deductions over 27.5 years (3.636%/year). Most common for long-term landlords.
MACRS: Accelerated — higher deductions early, lower later. Uses mid-month convention.
Bonus Depreciation: 100% immediate deduction under TCJA (2017-2022). Phasing down 20%/year starting 2023. For 2026 it's 40%.

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For educational purposes. Consult a CPA for tax advice specific to your situation. Bonus depreciation rules change annually per the TCJA sunset schedule.

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Frequently Asked Questions

How does rental property depreciation work?

Residential rental property: 27.5-year straight-line depreciation. Commercial property: 39 years. Depreciation starts when the property is placed in service (ready to rent). Land itself cannot be depreciated.

What is cost segregation?

Accelerating depreciation by classifying components as personal property (5, 7, 15 years) instead of real property (27.5 years). Can accelerate depreciation and defer taxes. 1031 exchanges often trigger cost segregation studies.

Can I depreciate renovations vs repairs?

Capital improvements are depreciated; repairs are expensed. A new roof = capital improvement (depreciate). Patching a roof = repair (expense). The line isn't always clear — IRS looks at whether the improvement adds value or merely maintains.