Real Estate

Property Depreciation Tax Calculator

The IRS allows you to deduct the cost of a residential rental building over 27.5 years — regardless of whether the property actually loses value. This calculator shows your annual depreciation deduction and estimated tax savings by bracket.

Property Purchase Price ($)

Land Value ($)

Closing Costs Added to Basis ($)

Capital Improvements ($)

Your Tax Bracket (%)

ANNUAL DEPRECIATION DEDUCTION

$—

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Depreciable Basis

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Annual Tax Savings

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Total Deduction (27.5 yr)

Tax Bracket	Annual Savings	Total Savings (27.5 yr)

Depreciation deduction is subject to passive activity loss rules — consult a tax professional. Depreciation claimed must be recaptured at sale at 25% (unrecaptured Section 1250 gain). Land value is excluded as land does not depreciate.