Depreciation Calculator (MACRS)
Annual MACRS depreciation, first-year partial (mid-month convention), and recapture projection for US residential and commercial real estate. Accurate as of April 2026.
Rates current as of April 2026
2026 federal IRS brackets, post-OBBBA permanent extensions. MACRS § 168 recovery periods, recapture § 1250.
Property details
Land is not depreciable. Typical: 20-30%. Check your county assessment for ratio.
Mid-month convention: Jan = 11.5/12; Dec = 0.5/12 of a full year in year 1.
§168(k) — applies to property with useful life ≤ 20 yrs (i.e., the cost-seg-broken-out components below). 100% rate restored under OBBBA for 2025+.
% of building basis reclassified from 27.5/39-year to short-life (5/7/15-year) property — fixtures, carpet, paving, landscaping. A real engineered cost-seg study typically lands 20-30% on residential rentals, 25-40% on commercial. 0% disables cost-seg.
Tax profile
Determines your marginal federal rate for tax-savings estimate.
Your marginal federal rate
22%
Annual Depreciation
$13,636
$1,136/month · 27.5yr SL
Year 1 Deduction
$13,068
Mid-month: 11.5 months allowed
Year 1 Tax Savings
$2,875
At 22% marginal rate
What this means for you
- WINDepreciation shelters about $13,636/yr of rental income, saving roughly $3,000 in tax at your 22% marginal rate — a non-cash deduction even as the building tends to appreciate.
- CHECKEvery dollar deducted is recaptured at sale: a 10-year hold builds about $135,795 of depreciation, ~$33,949 of §1250 recapture tax (25%) on top of capital gains. A 1031 exchange rolls it forward; a stepped-up basis at death erases it.
Depreciation schedule
| Year | Depreciation | Tax Savings | Cumulative | Remaining Basis |
|---|---|---|---|---|
| Year 1 | $13,068 | $2,875 | $13,068 | $361,932 |
| Year 2 | $13,636 | $3,000 | $26,705 | $348,295 |
| Year 3 | $13,636 | $3,000 | $40,341 | $334,659 |
| Year 4 | $13,636 | $3,000 | $53,977 | $321,023 |
| Year 5 | $13,636 | $3,000 | $67,614 | $307,386 |
| Year 6 | $13,636 | $3,000 | $81,250 | $293,750 |
| Year 7 | $13,636 | $3,000 | $94,886 | $280,114 |
| Year 8 | $13,636 | $3,000 | $108,523 | $266,477 |
| Year 9 | $13,636 | $3,000 | $122,159 | $252,841 |
| Year 10 | $13,636 | $3,000 | $135,795 | $239,205 |
| Year 11 | $13,636 | $3,000 | $149,432 | $225,568 |
| Year 12 | $13,636 | $3,000 | $163,068 | $211,932 |
| Year 13 | $13,636 | $3,000 | $176,705 | $198,295 |
| Year 14 | $13,636 | $3,000 | $190,341 | $184,659 |
| Year 15 | $13,636 | $3,000 | $203,977 | $171,023 |
Recapture projection
If you sold in year 10 after claiming full depreciation each year, you'd face an estimated $33,949 of § 1250 depreciation recapture tax (25% on $135,795 of previously deducted depreciation).
A 1031 exchange or holding until death (stepped-up basis) avoids this. See the 1031 calculator to model that scenario.
Informational only — not tax advice.
This uses MACRS straight-line only. Bonus depreciation, cost segregation, § 179 expensing, QIP (15-year interior improvements), passive activity loss rules, and the at-risk limitation can all change real-world outcomes. Work with a CPA familiar with real estate before filing.