Property Depreciation Calculator: Real Estate

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Real Estate Depreciation
$
Recovery Period:
Years 
 
Placed in Service:    
Month:  
Year:  
 
Depreciation
Year
 
Depreciation
Expense
2012 $18,750
2013 $68,750
2014 $118,750
2015 $168,750
2016 $218,750
2017 $268,750
2018 $318,750
2019 $368,750
2020 $418,750
2021 $468,750
2022 $500,000
Scroll down for full schedule

Calculator Use

Use this calculator specifically to 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.  Applicable for MACRS.

Inputs

Cost Basis
the original value of yourproperty or the depreciable cost
Recovery Period
the number of years during which the cost basis of an item of property is recovered
Placed in Service
select the month and enter the year the asset started being used for its intended purpose
Year
enter 1 or 4 digits; enter a four digit year to use your actual years OR enter a 1 to list years using digits 1 through the last year

Property Depreciation Schedule

Cost Basis: $500,000.00, Life: 10 years,
Placed in Service: 8/2012, First Year: 4.5 months, Last Year: 7.5 months

Depreciation Schedule
Year
 
Book Value
Period Start
Depreciation
Expense
Accumulated
Depreciation
Book Value
Period End
2012 $500,000 $18,750.00 $18,750 $481,250
2013 $481,250 $50,000.00 $68,750 $431,250
2014 $431,250 $50,000.00 $118,750 $381,250
2015 $381,250 $50,000.00 $168,750 $331,250
2016 $331,250 $50,000.00 $218,750 $281,250
2017 $281,250 $50,000.00 $268,750 $231,250
2018 $231,250 $50,000.00 $318,750 $181,250
2019 $181,250 $50,000.00 $368,750 $131,250
2020 $131,250 $50,000.00 $418,750 $81,250
2021 $81,250 $50,000.00 $468,750 $31,250
2022 $31,250 $31,250.00 $500,000 $0

About this Calculator

If you need a Recovery Period that is not shown please contact us to add it.  The drop down menu is used to list the common values.

Some use 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?

 

Cite this content, page or calculator as:

Furey, Edward "Property Depreciation Calculator: Real Estate" From http://www.CalculatorSoup.com - Online Calculator Resource.