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Depreciation Calculator

Compute annual straight line depreciation on a residential rental.

Tax

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Annual Depreciation
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Building Basis
How this number is calculated
Basis
Residential rental straight-line depreciation
Formula
annual depreciation = purchase price x (1 - land %) / 27.5
Includes
  • purchase price
  • land value percentage
Excludes
  • closing-cost basis adjustments
  • personal property reclassification
  • mid-month convention detail
Source
Public calculator inputs
Computed
Live from the values currently entered above
Notes
Residential rental buildings are commonly depreciated over 27.5 years; land is not depreciable.
How it works
1

Subtract land value from purchase price

2

Divide the building basis by 27.5 (residential straight line)

3

That is your annual depreciation deduction on Schedule E

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Related tools and terms

Schedule E Estimator

Estimate your Schedule E rental taxable income for a property.

Cost Segregation Estimator

Estimate first year depreciation boost from a cost segregation study.

Frequently asked questions
How do I know the land percentage?
Check your county assessor's land versus improvement split as a starting point.