Free rental planning tool
Rental depreciation scenario calculator
Estimate a full year's straight-line depreciation for a residential rental building under a 27.5-year GDS assumption.
How this calculation works
Subtract land from total basis, add eligible building basis, and divide by 27.5 years. This illustrates a full year of residential rental building depreciation under the general depreciation system. Land is not depreciable.
Assumptions to review
First and final years use applicable conventions, often the mid-month convention. Placed-in-service dates, mixed use, ADS, asset classes, elections, and other adjustments require a proper depreciation schedule. This is not a filing calculation.
Prepare the basis records behind the estimate
Start with a supported tax basis. Keep the closing statement, land-and-building allocation, improvement invoices and prior depreciation records together. The input is total property tax basis, which may differ from the purchase price or a current appraisal. Enter the land portion separately. Add eligible building basis only when it is not already included, so the same improvement is counted once.
Keep dates and assets separate. Record when the building became ready and available for rent. Later improvements, appliances and other assets may need their own placed-in-service dates and schedules. This calculator combines only the building basis you enter into one full-year 27.5-year illustration; it does not determine asset classification, first-year depreciation or eligibility for special allowances.
Use the result as a planning reference. A $300,000 total basis less $60,000 land gives a $240,000 building basis and an illustrative $8,727.27 full-year amount. The figure does not establish your deductible amount, tax savings or remaining adjusted basis. Review personal-use conversions, mixed use, prior deductions and the actual schedule with your tax preparer, using the IRS publication linked below.