Property Details
Only the building — land is not depreciable (IRS Pub 946)
For reference only. Land value = Total − Building value.
Depreciation Schedule
IRS Section 168 — Straight-line method
Depreciable Basis$300,000
Recovery Period27.5 years
Annual Depreciation$10,909
Monthly Depreciation$909
First Year (mid-month conv.)$10,455
Estimated Tax Savings (at 24% bracket)
$2,618/yr
First year: $2,509
⚠️ Depreciation Recapture (at sale)
$75,000
Total accumulated depreciation × 25% recapture rate. Due when you sell the property.
💡 Passive Loss Limitation: If your AGI is under $100K, you can deduct up to $25K of rental losses. Between $100K–$150K the deduction phases out. Above $150K, losses are suspended but can offset future rental income or gains at sale.
Data Source & Legal Disclaimer
Effective: 2026-01-01
Last updated: 2 weeks ago
Update frequency: Annual
This calculator uses straight-line depreciation with mid-month convention per IRS Pub 946. Cost segregation estimates are simplified. Actual savings depend on your tax bracket and filing status. This is not tax advice — consult a CPA.