IRS MACRS depreciation calculator for land improvements including parking lots, landscaping, and fencing. 15-year recovery period.
Year 1 Deduction
$5,000
Recovery Period
15 years
Total Depreciation
$100,000
Method
DB/SL
Year
Rate
Deduction
Cumulative
1
5.00%
$5,000
$5,000
2
9.50%
$9,500
$14,500
3
8.55%
$8,550
$23,050
4
7.70%
$7,700
$30,750
5
6.93%
$6,930
$37,680
6
6.23%
$6,230
$43,910
7
5.90%
$5,900
$49,810
8
5.90%
$5,900
$55,710
9
5.91%
$5,910
$61,620
10
5.90%
$5,900
$67,520
11
5.91%
$5,910
$73,430
12
5.90%
$5,900
$79,330
13
5.91%
$5,910
$85,240
14
5.90%
$5,900
$91,140
15
5.91%
$5,910
$97,050
16
2.95%
$2,950
$100,000
IRS Classification
IRS Asset Class: GDS 15-year (MACRS Asset Class 00.3)
Section 179: Not EligibleBonus Depreciation: Eligible
Key Tax Facts
Land improvements are 15-year MACRS property under Asset Class 00.3
Land itself is NOT depreciable — only improvements to land
Bonus depreciation available (not Section 179 for most land improvements)
Includes any depreciable improvement to land that is not a building
Parking lot resurfacing may be currently deductible as a repair vs capitalized improvement
What This Covers
Parking lots and paving
Landscaping and irrigation
Fencing
Sidewalks
Outdoor lighting
Retaining walls
Swimming pools (commercial)
Common Questions
Yes. A paved parking lot is a 15-year land improvement under MACRS Asset Class 00.3. The paving itself is depreciable over 15 years using the 150% declining balance method. Bonus depreciation is available, allowing the full cost to be deducted in year 1.
Landscaping that improves business property is a 15-year land improvement. However, routine maintenance (mowing, pruning) is a currently deductible expense. Plantings, irrigation systems, and permanent landscaping features are capitalized and depreciated over 15 years.
No. Land itself has an indefinite useful life and is never depreciated. Only improvements to land (paving, fencing, landscaping, outdoor structures) are depreciable. When you purchase improved property, you must allocate the purchase price between land (not depreciable) and improvements (depreciable).
Tax disclaimer: This calculator provides estimates based on standard IRS MACRS rules from Publication 946. Your actual depreciation deduction may differ based on business-use percentage, the mid-quarter convention, state tax conformity, bonus depreciation phase-outs, and other factors specific to your situation. Always consult a licensed CPA or tax professional before making tax decisions.