Finance category
Mortgage, loan, investing, tax, and money calculators.
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
| Year | Depreciation | Cumulative | Remaining basis | Tax 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
- Enter property cost and the land value (land doesn't depreciate).
- Pick property type — residential rental uses 27.5-year, commercial uses 39-year straight line.
- Enter your marginal tax rate to compute annual tax savings.
- 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.
Related Calculators
Depreciation Calculator
Standalone depreciation calculator.
Bonus Depreciation Calculator
First-year bonus on qualifying short-life property.
Cost Segregation Calculator
Break out personal property to accelerate depreciation.
Depreciation Recapture Tax Calculator
Tax owed on depreciation at sale.
Cost Basis Calculator
Track basis as depreciation reduces it.
Rental Property Tax Deduction Calculator
Total deductions including depreciation.
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