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Rental Property Depreciation Calculator
Estimate a full-year straight-line depreciation amount for a residential rental building under the standard 27.5-year recovery period.
Written by Johana Williams • Reviewed by: Peter Evering • Last updated: September 11, 2026
Land is not depreciated, so the first job is separating the building portion of the purchase from the land portion. This simple view takes that building basis, adds any capital improvements you enter, and divides the result by 27.5 years for a full-year straight-line estimate.
The IRS applies a mid-month convention in the first and final year, and the right basis can be affected by personal use, a conversion from a home, previous depreciation, cost segregation and other facts. This is a planning tool, not a filing calculation.
Basis assumptions
What the calculator assumes
It assumes a residential rental building using the General Depreciation System and a full year in service. It treats the land share as non-depreciable and the improvement figure as capital work. A repair, a short-term rental arrangement or a different depreciation election can produce a different answer.
Use a tax professional for the filing number
The IRS tables determine the first-year amount based on the month the property is placed in service. They also distinguish between building property and shorter-lived items. Use this estimate to understand the scale of depreciation, then have a CPA or qualified tax preparer calculate the amount that belongs on the return.
Sources and limits
The IRS source below supports the recovery-period and convention information used in this planning view. Confirm your basis and filing treatment with a qualified tax professional.
- IRS Publication 527 — Residential Rental Property — verified 2026-09-10
- IRS Instructions for Form 4562 — recovery period and convention — verified 2026-09-10
Frequently asked questions
Why is land excluded from the depreciation estimate? +
Land is not depreciable. The calculation applies the entered land share to remove that portion before estimating the building basis.
Why does this show a full-year amount? +
The tool uses a simple full-year straight-line estimate to make planning transparent. IRS first-year depreciation uses a mid-month convention, so a tax return can show a different first-year amount.
Can I add a new roof or other improvement? +
Enter only a cost your tax professional treats as a capital improvement. The IRS distinguishes capital improvements from routine repairs and maintenance.
Does this calculate my tax savings? +
No. Tax savings depend on your income, passive-activity rules, other deductions and filing situation. The tool estimates depreciation only.
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