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Depreciation Schedule Calculator

Build a year-by-year depreciation schedule for residential rental (27.5 years) or commercial real estate (39 years). See annual depreciation, cumulative total, remaining basis, and tax savings each year.

$
$
%

Annual depreciation

$13,091

straight-line / 27.5 years

Annual tax savings

$4,189

at 32% marginal

Depreciable basis

$360,000

cost − land

Year-by-year schedule

YearDepreciationCumulativeRemaining basisTax savings
1$13,091$13,091$346,909$4,189
2$13,091$26,182$333,818$4,189
3$13,091$39,273$320,727$4,189
4$13,091$52,364$307,636$4,189
5$13,091$65,455$294,545$4,189
6$13,091$78,545$281,455$4,189
7$13,091$91,636$268,364$4,189
8$13,091$104,727$255,273$4,189
9$13,091$117,818$242,182$4,189
10$13,091$130,909$229,091$4,189

How to Use

  1. Enter property cost and the land value (land doesn't depreciate).
  2. Pick property type — residential rental uses 27.5-year, commercial uses 39-year straight line.
  3. Enter your marginal tax rate to compute annual tax savings.
  4. Set how many years of schedule to display.

Frequently Asked Questions

Why doesn't land depreciate?

Tax law treats land as having indefinite useful life — it doesn't wear out. Only the building and certain improvements depreciate. Allocate carefully; over-allocating to land understates your depreciation.

How do I split between land and building?

Use the property tax assessment ratio (assessed land / assessed total × purchase price) as a defensible starting point. Or use a qualified appraiser. Replacement cost analysis is another method. Don't just guess — the IRS will challenge weak allocations.

Can I switch to bonus depreciation or cost segregation?

Bonus depreciation doesn't apply to the building itself, but cost segregation can identify shorter-life components (5-year personal property, 15-year land improvements) that do qualify for bonus.

What happens when I sell?

All depreciation taken (or that should have been taken) gets recaptured at up to 25% federal. Use the depreciation recapture calculator to size it. A 1031 exchange defers both recapture and capital gains.

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