Rental Property Depreciation Calculator
Calculate Your Property's Annual Depreciation Value for Tax Purposes
Understanding Rental Property Depreciation
What is Rental Property Depreciation?
Rental property depreciation is a tax deduction that lets you recover the costs of income-producing property over time. The IRS requires residential rental property to be depreciated over 27.5 years using the Modified Accelerated Cost Recovery System (MACRS).
How is it Calculated?
The calculation uses the straight-line method with a mid-month convention. This means:
- Property cost (excluding land) is divided by 27.5 years
- First year is prorated based on the month placed in service
- Depreciation starts mid-month of the placed-in-service month