Free Real Estate Depreciation Calculator
Calculate straight-line depreciation for residential or commercial investment property for tax purposes.
USD
Annual Depreciation
$10,909.09
Monthly Depreciation$909.09
Total Depreciation Over Recovery Period$300,000
Annual Depreciation vs Building Value (Excluding Land)
Real Estate Depreciation for Tax Purposes
The IRS allows property investors to deduct the cost of buildings (not land) over a set recovery period using straight-line depreciation.
Formula
Annual Depreciation = Building Value / Recovery Period
Recovery Periods
Example Calculation
A residential rental property has a building value of $300,000 (excluding land) with a 27.5-year recovery period.
- 01Annual depreciation: $300,000 / 27.5 = $10,909.09
- 02Monthly depreciation: $10,909.09 / 12 = $909.09
- 03Over the full recovery period, the entire $300,000 building value is depreciated