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Calculators > Financial > Depreciation > Real Estate Depreciation Calculator

Property Depreciation Calculator: Real Estate
Recovery Period (Years):
Placed in Service:  
Month:
Year:
Depreciation for any full year:

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.

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?
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