Property Depreciation Calculator

The property depreciation calculator will instantly estimate the depreciation value for your residential, rental, and commercial properties. The tool also estimates the depreciation of a rental property and displays a full schedule.

How To Calculate Property Depreciation?

• Count the number of years you have been using the property
• Now divide the value of the property by useful tenure
• Subtract the resulting amount from the net income of the property

Our rental property depreciation calculator also considers the same criteria to print a proper schedule regarding your property value.

The procedure is quite similar to that of the straight-line depreciation method.

Related: You may utilize this calculator to calculate the MACRS depreciation value as well.

Rental Property Depreciation:

For those who rent properties or own a rental property (either residential or commercial), they need to make some changes to their depreciation calculations. The reason is that IRS has set its own scheme that needs property depreciation calculations done in the middle of the month. So you will not be able to get the annual depreciation value in such a case.

1st Year Depreciation = [{(12 – Months) + 0.5}\12] * [Cost Basis/Recovery Period]

But our depreciation calculator rental property will also show you a complete annually-based depreciation schedule for your property so that you may not have to deal with complex calculations on your own.

Working of Property Depreciation Calculator:

Our calculator specifically gives you a depreciation schedule for a property that is real estate. Let’s find out how to use it!

Input:

• Enter the cost basis and recovery period
• Likewise, enter the start date of the property
• Select if you want to round to dollars or not
• Tap Calculate

Output:

• Property depreciation value
• Beginning book value
• Depreciation percent and amount
• Accumulated depreciation amount
• Ending book value
• Property depreciation graph

Faqs:

What Factors Affect Property Value?

Certain factors add to the depreciation of a house and among these are:

• Local facilities
• Appeal and size
• Market conditions
• Neighborhood
• Age of house

The real estate depreciation calculator calculates the depreciation by considering all of the above-mentioned parameters.

How Much Does A Home Depreciate Per Year?

Typically, the average rate of depreciation for a home is 3.636% per annum. For rental property, it lasts for about 27.5 years. For a more accurate estimation, you may better use this home depreciation calculator absolutely for free.

When Does Property Depreciation Start?

When you purchase a property and renovate it before you start living in it or renting it, its depreciation starts just beside it.

For example;

Suppose you bought a house in old condition on March 12, 2023. After renovation, it was ready to live on by April 01, 2023, but you want to rent it. Now suppose you found a renter on date May 15, 2023, the depreciation calculation for your home will start on April 01, 2023.

Can You Depreciate a Rental Property If You Purchased It Using a Loan?

Yes, of course! You may start depreciation calculations for properties that you have bought on a loan amount. For quick estimations, you can prefer to use this house depreciation calculator for free.

IRS Residential Rental Property GDS Table:

References:

From the source Wikipedia: Depreciation, Accounting concept, Impairment, Depletion and amortization, Effect on cash, Straight-line depreciation, Diminishing balance method, Annuity depreciation, Sum-of-years-digits method, Units-of-production depreciation, Group depreciation method, Composite depreciation method, Capital allowances

From the source IRS: Publication 946 (2022), How To Depreciate Property, What Property Can Be Depreciated?, Property Used in Your Business or Income-Producing Activity