Property and Real Estate - United States

    Depreciation Calculator (Residential Rental)

    Estimate annual depreciation using depreciable basis and the 27.5-year residential rental recovery period.

    Tax year: 2026Last updated: May 23, 2026Residential rental MACRS baseline27.5-year recovery periodBusiness-use allocation
    Inputs

    Configure your scenario

    Enter property cost, land value, and business-use percentage to estimate depreciation.

    Depreciable basis

    $345,000

    Annual deduction

    $12,545

    Monthly

    $1,045

    Breakdown

    Detailed estimate

    Depreciable basis before allocation
    $345,000
    Allocated depreciable basis
    $345,000
    Annual depreciation
    $12,545
    Monthly depreciation baseline
    $1,045
    FAQ

    Depreciation - quick answers

    Why is land value excluded?+

    Land is not depreciable for federal tax purposes; only building/improvements are generally depreciated.

    Does this include mid-month convention?+

    No. This page provides a baseline annual estimate. Final return amounts depend on placed-in-service date and method details.

    Sources & Act Reference

    Depreciation references

    Depreciable basis

    Land value is excluded; building basis and certain improvements are depreciated.

    Recovery period

    Residential rental property generally uses 27.5-year recovery under MACRS.

    Rule Trace

    Applied rule and official references

    Applied rule: annual depreciation = allocated depreciable basis / 27.5 years

    Compliance checklist

    For filing, confirm basis allocations, placed-in-service dates, and improvement classification with your records or advisor.

    Smart Insight

    Estimated annual depreciation is $12,545.