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Property Depreciation Calculator: Real Estate
Real Estate Property Depreciation Schedule
Example -
Cost Basis: $500,000.00, Life: 39 years,
Placed in Service: 8/2008, First Year: 4.5 months, Last Year: 7.5 months
| Period |
Year |
Book Value Period Start |
Depreciation Expense |
Accumulated Depreciation |
Book Value Period End |
|---|---|---|---|---|---|
| 1 | 2008 | $500,000 | $4,808 | $4,808 | $495,192 |
| 2 | 2009 | $495,192 | $12,821 | $17,628 | $482,372 |
| 3 | 2010 | $482,372 | $12,821 | $30,449 | $469,551 |
| 4 | 2011 | $469,551 | $12,821 | $43,269 | $456,731 |
| 5 | 2012 | $456,731 | $12,821 | $56,090 | $443,910 |
| 6 | 2013 | $443,910 | $12,821 | $68,910 | $431,090 |
| 7 | 2014 | $431,090 | $12,821 | $81,731 | $418,269 |
| 8 | 2015 | $418,269 | $12,821 | $94,551 | $405,449 |
| 9 | 2016 | $405,449 | $12,821 | $107,372 | $392,628 |
| 10 | 2017 | $392,628 | $12,821 | $120,192 | $379,808 |
| 11 | 2018 | $379,808 | $12,821 | $133,013 | $366,987 |
| 12 | 2019 | $366,987 | $12,821 | $145,833 | $354,167 |
| 13 | 2020 | $354,167 | $12,821 | $158,654 | $341,346 |
| 14 | 2021 | $341,346 | $12,821 | $171,474 | $328,526 |
| 15 | 2022 | $328,526 | $12,821 | $184,295 | $315,705 |
| 16 | 2023 | $315,705 | $12,821 | $197,115 | $302,885 |
| 17 | 2024 | $302,885 | $12,821 | $209,936 | $290,064 |
| 18 | 2025 | $290,064 | $12,821 | $222,756 | $277,244 |
| 19 | 2026 | $277,244 | $12,821 | $235,577 | $264,423 |
| 20 | 2027 | $264,423 | $12,821 | $248,397 | $251,603 |
| 21 | 2028 | $251,603 | $12,821 | $261,218 | $238,782 |
| 22 | 2029 | $238,782 | $12,821 | $274,038 | $225,962 |
| 23 | 2030 | $225,962 | $12,821 | $286,859 | $213,141 |
| 24 | 2031 | $213,141 | $12,821 | $299,679 | $200,321 |
| 25 | 2032 | $200,321 | $12,821 | $312,500 | $187,500 |
| 26 | 2033 | $187,500 | $12,821 | $325,321 | $174,679 |
| 27 | 2034 | $174,679 | $12,821 | $338,141 | $161,859 |
| 28 | 2035 | $161,859 | $12,821 | $350,962 | $149,038 |
| 29 | 2036 | $149,038 | $12,821 | $363,782 | $136,218 |
| 30 | 2037 | $136,218 | $12,821 | $376,603 | $123,397 |
| 31 | 2038 | $123,397 | $12,821 | $389,423 | $110,577 |
| 32 | 2039 | $110,577 | $12,821 | $402,244 | $97,756 |
| 33 | 2040 | $97,756 | $12,821 | $415,064 | $84,936 |
| 34 | 2041 | $84,936 | $12,821 | $427,885 | $72,115 |
| 35 | 2042 | $72,115 | $12,821 | $440,705 | $59,295 |
| 36 | 2043 | $59,295 | $12,821 | $453,526 | $46,474 |
| 37 | 2044 | $46,474 | $12,821 | $466,346 | $33,654 |
| 38 | 2045 | $33,654 | $12,821 | $479,167 | $20,833 |
| 39 | 2046 | $20,833 | $12,821 | $491,987 | $8,013 |
| 40 | 2047 | $8,013 | $8,013 | $500,000 | $0 |
About this Calculator
This calculator is set up to specifically calculate depreciation of residential rental or nonresidential real property related to IRS form 4562 lines 19 and 20. It assumes MM (mid month convention) and S/L (straight-line depreciation). This calculator calculates depreciation by a formula. The IRS also allows calculation of depreciation through table factors listed in Publication 946 linked below.
If you need a Recovery Period that is not shown please contact us to add it.
Some users this calculator for figuring depreciation under MACRS.
Real Estate Property Depreciation
The core calculation is for straight line depreciation, as the name suggests, it is a straight line drop in asset value. The depreciation of an asset is spread evenly across the life.
This calculator is specific for property that is real estate. The key difference from normal straight line depreciation is that a mid month convention is used in calculating depreciation in the first and last years. That is, only 1/2 month of depreciation is calculated for the months the property was put into or taken out of service.
With real estate the total cost basis is depreciated so there is no salvage value.
- Depreciation in Any Full year = Cost / Life
- Partial year depreciation, when the property was put into service in the M-th month is taken as:
- First year depreciation = (M-0.5 / 12) * (Cost / Life)
Tax Forms/ Reference
Form 4562 IRS 2009 Depreciation and Amortization (Including Information on Listed Property)
Inst 4562 IRS 2009 Instructions for Form 4562, Depreciation and Amortization
Publ 946 IRS Publication: How to Depreciate Property
Turbo Tax Documentation: Real Estate Tax and Rental Property: How do I calculate depreciation?