Calculate real estate depreciation for real estate investments and properties
Enter property purchase price, land value, and recovery period (27.5 years residential, 39 years commercial). The calculator computes annual depreciation deductions.
A $550,000 property with $100,000 land value depreciates $16,364 annually over 27.5 years ($450,000 รท 27.5).
Residential rental property depreciates over 27.5 years; commercial property over 39 years. Land is not depreciable.
Allows you to deduct 100% (currently phasing down) of certain property costs in year one rather than over the standard recovery period.
Depreciation recapture taxes previously claimed depreciation at up to 25% when you sell. 1031 exchange can defer this tax.