Depreciation Calculator 

Per the IRS, you are allowed an annual tax deduction for the "wear and tear" of property over the course of time, known as The gradual reduction in value of an asset over time. The IRS requires investors to depreciate real estate (and certain other assets) over a specified period of time. Residential real estate uses a 27.5 year schedule, and commercial real estate uses a 39 year schedule. Depreciation . As a real estate investor, The gradual reduction in value of an asset over time. The IRS requires investors to depreciate real estate (and certain other assets) over a specified period of time. Residential real estate uses a 27.5 year schedule, and commercial real estate uses a 39 year schedule. Depreciation is an important tool because it allows you to deduct the cost reducing your taxable income. 

Utilize our Depreciation Calculator below to find the annual allowable Depreciation for your real estate investment property, as well as the Accumulated Depreciation of the property over the course of ownership. In addition to Capital Gains Tax, Accumulated Depreciation Recapture tax is also deferred with a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange . Use our Capital Gains Calculator to see how a Internal Revenue Code Section 1031 states that "no gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like kind which is to be held for productive use in a trade or business or for investment." 1031 Exchange could benefit you.

Complete the calculator fields below with the original purchase price of your property, the value of the land (original purchase price minus any buildings/structures) which is non-depreciable, and any improvements to the property which will be added to your cost basis. 

THIS CALCULATOR IS FOR INFORMATIONAL PURPOSES ONLY. Please consult your Tax Advisor for an accurate calculation based upon your specific situation.