Can I depreciate the land?

No. Only the building value is depreciable. You must allocate the purchase price between land and building.

What's the useful life for residential vs commercial?

IRS rules specify 27.5 years for residential rental property and 39 years for commercial property under the MACRS system.

Property Depreciation Calculator

How to Use

Enter the building value (excluding land), number of years owned, and useful life in years (27.5 for residential, 39 for commercial). Click Calculate.

Formula

Annual Depreciation = building value / useful life. Accumulated = min(annual × years, building value). Remaining = building value - accumulated.

Examples

$275,000 building, 10 years, 27.5 year life → $10,000/year, $100,000 accumulated, $175,000 remaining.

Property Depreciation Calculator

How to Use

Formula

Examples

FAQ