IRS MACRS depreciation calculator for residential rental property including single-family rentals, duplexes, and apartment buildings. 27.5-year straight-line recovery.
Year 1 Deduction
$3,485
Recovery Period
27.5 years
Total Depreciation
$101,667
Method
Straight-Line
Year
Rate
Deduction
Cumulative
1
3.48%
$3,485
$3,485
2
3.64%
$3,636
$7,121
3
3.64%
$3,636
$10,758
4
3.64%
$3,636
$14,394
5
3.64%
$3,636
$18,030
6
3.64%
$3,636
$21,667
7
3.64%
$3,636
$25,303
8
3.64%
$3,636
$28,939
9
3.64%
$3,636
$32,576
10
3.64%
$3,636
$36,212
11
3.64%
$3,636
$39,848
12
3.64%
$3,636
$43,485
13
3.64%
$3,636
$47,121
14
3.64%
$3,636
$50,758
15
3.64%
$3,636
$54,394
16
3.64%
$3,636
$58,030
17
3.64%
$3,636
$61,667
18
3.64%
$3,636
$65,303
19
3.64%
$3,636
$68,939
20
3.64%
$3,636
$72,576
21
3.64%
$3,636
$76,212
22
3.64%
$3,636
$79,848
23
3.64%
$3,636
$83,485
24
3.64%
$3,636
$87,121
25
3.64%
$3,636
$90,758
26
3.64%
$3,636
$94,394
27
3.64%
$3,636
$98,030
28
3.64%
$3,636
$101,667
IRS Classification
IRS Asset Class: GDS 27.5-year Straight Line (Residential Rental)
Section 179: Not EligibleBonus Depreciation: Not Eligible
Key Tax Facts
Residential rental property is 27.5-year straight-line MACRS — no accelerated methods
Mid-month convention applies — placed in service date determines first-year deduction
Only the building is depreciable — land portion must be allocated and excluded
Section 179 and bonus depreciation NOT available for residential rental property
Improvements after purchase are depreciated separately at 27.5 years
Cost segregation studies can reclassify components to shorter life property
What This Covers
Single-family rental homes
Duplexes and triplexes
Apartment buildings
Condos used as rental
Vacation rentals
Common Questions
Residential rental property is depreciated over 27.5 years using the straight-line method. Annual depreciation = (purchase price minus land value) ÷ 27.5. Example: $300,000 property with $60,000 land value = $240,000 depreciable basis ÷ 27.5 = $8,727/year. The first year is prorated based on the mid-month convention.
Common methods: (1) Use the tax assessed value ratio — if the county assesses land at 20% of total, allocate 20% of your purchase price to land. (2) Get an appraisal. (3) Use the purchase price allocation if land and building were priced separately. The IRS allows any reasonable method.
Depreciation starts when the property is placed in service — meaning it is ready and available for rent, not necessarily when a tenant moves in. If you buy a property in June and it's ready to rent by July, depreciation starts in July.
A cost segregation study is an engineering analysis that identifies building components that can be reclassified from 27.5-year or 39-year property to shorter-lived categories (5, 7, or 15-year). This accelerates depreciation deductions significantly. Typically costs $5,000–$15,000 but saves far more in taxes for larger properties.
Most improvements to a rental property must be capitalized and depreciated over 27.5 years. However, appliances (5-year), carpets (5-year), and land improvements (15-year) have shorter lives. Repairs (not improvements) are currently deductible. The tangible property regulations define the repair vs improvement distinction.
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.