Tax Depreciation Calculator
Calculate annual depreciation deductions for investment properties.
Property Details
$400,000
$80,000
Land is not depreciable. Typically 15-25% of purchase price.
$0
Tax Information
32%
Annual Depreciation
$11,636
Annual Tax Savings
$3,724
Depreciation Period
27.5 years
Depreciation Breakdown
Purchase Price$400,000
Land Value (Non-depreciable)-$80,000
Capital Improvements+$0
Depreciable Basis$320,000
Monthly Depreciation$970
First Year Depreciation$11,636
Total Depreciation$320,000
Total Tax Savings$102,400
Depreciation Schedule
| Year | Depreciation | Accumulated | Remaining Basis | Tax Savings |
|---|---|---|---|---|
| 2025 | $11,636 | $11,636 | $308,364 | $3,724 |
| 2026 | $11,636 | $23,273 | $296,727 | $3,724 |
| 2027 | $11,636 | $34,909 | $285,091 | $3,724 |
| 2028 | $11,636 | $46,545 | $273,455 | $3,724 |
| 2029 | $11,636 | $58,182 | $261,818 | $3,724 |
| 2030 | $11,636 | $69,818 | $250,182 | $3,724 |
| 2031 | $11,636 | $81,455 | $238,545 | $3,724 |
| 2032 | $11,636 | $93,091 | $226,909 | $3,724 |
| 2033 | $11,636 | $104,727 | $215,273 | $3,724 |
| 2034 | $11,636 | $116,364 | $203,636 | $3,724 |
| 2035 | $11,636 | $128,000 | $192,000 | $3,724 |
| 2036 | $11,636 | $139,636 | $180,364 | $3,724 |
| 2037 | $11,636 | $151,273 | $168,727 | $3,724 |
| 2038 | $11,636 | $162,909 | $157,091 | $3,724 |
| 2039 | $11,636 | $174,545 | $145,455 | $3,724 |
Showing first 15 years. Export for full schedule.
Important Tax Considerations
- Depreciation is a "paper loss" that reduces taxable income without actual cash outlay
- When you sell, depreciation is "recaptured" and taxed at up to 25%
- Consider cost segregation studies for accelerated depreciation on larger properties
- Consult a tax professional for personalized advice
Maximize Your Tax Benefits
Finance more properties to increase your depreciation deductions.