Real Estate Depreciation Schedule — 27.5-Year Tax Depreciation Excel Template

Sample: $350,000 Rental Property — Depreciation Schedule (First 10 Years)

Year	Building Basis	Annual Depreciation	Accumulated Depreciation	Remaining Basis
1	$280,000	$10,182	$10,182	$269,818
2	$280,000	$10,182	$20,364	$259,636
3	$280,000	$10,182	$30,545	$249,455
4	$280,000	$10,182	$40,727	$239,273
5	$280,000	$10,182	$50,909	$229,091
6	$280,000	$10,182	$61,091	$218,909
7	$280,000	$10,182	$71,273	$208,727
8	$280,000	$10,182	$81,455	$198,545
9	$280,000	$10,182	$91,636	$188,364
10	$280,000	$10,182	$101,818	$178,182

Total Depreciation Over 27.5 Years: $280,000

What the Depreciation Schedule Template Includes

📊 Full 27.5-Year Schedule

Complete depreciation table for all 27.5 years of residential rental property depreciation. Every year calculated automatically.

🏗️ Cost Segregation Study Inputs

Enter separate amounts for building, land improvements, and personal property to model accelerated depreciation from a cost segregation study.

💰 Tax Deduction Summary

Annual depreciation amount you can deduct from rental income on your tax return — reduces your taxable income every year.

📅 Mid-Month Convention

IRS mid-month depreciation convention applied correctly — first year depreciation calculated based on the month placed in service.

📐 Land vs. Building Split

Automatically separates land value (non-depreciable) from building value (depreciable) using the standard land/building split ratio.

🖨️ Printable Tax Format

Clean, printer-friendly layout your accountant can use directly for Schedule E preparation. No subscription needed.

Frequently Asked Questions

What is the depreciation period for residential rental property?

Residential rental property depreciates over 27.5 years under IRS rules. This means you can deduct 1/27.5 of the building's basis (excluding land) each year as a tax deduction against your rental income.

How do you calculate depreciable basis?

Depreciable basis = Purchase price − Land value − Closing costs that are not depreciable. Land is typically 15–25% of purchase price. Our template calculates this automatically based on your inputs.

What is cost segregation?

Cost segregation reclassifies building components into shorter depreciation periods (5, 7, and 15 years) instead of 27.5 years. This accelerates depreciation deductions. Our template includes cost segregation inputs so you can model the benefit.

When does depreciation start?

Depreciation begins in the month the property is "placed in service" — when it's ready and available for rent. Our template's mid-month convention applies the correct first-year depreciation for your placed-in-service month.

Does depreciation apply to commercial property?

Commercial property uses a 39-year depreciation period instead of 27.5 years. For commercial properties, use our Commercial Investment Property Calculator template, which supports 39-year depreciation schedules.