Depreciation Allowance


(for estimate purposes only)

Property value $: the amount you pay for the property.
Depreciable basis: the original value of the rental property less the value of the land.
Percent depreciable %: depreciable basis measured as a percentage. If you bought the property for $400,000 and the land is worth $80,000, the depreciable basis would be $320,000. Therefore, the percent depreciable would be 80 percent.
Useful life (years): useful life is currently specified by the tax code as 27.5 years for residential property and 39 years for nonresidential (commercial) property.

Calculate Depreciation Allowance

Residential



Note: This is intended only to inform you about depreciation allowance. Other elements such as capitalized costs of acquisition and additions could effect your situation. Consult a qualified tax person before making any real estate investment decisions.

Financing Your Purchase?
If you are using a mortgage to purchase property, you will likely need to be pre-approved in order to have your offer accepted. Our preferred lender can get you started today with a mortgage pre-approval. Go here.

Commercial



Note: This is intended only to inform you about depreciation allowance. Other elements such as capitalized costs of acquisition and additions could effect your situation. Consult a qualified tax person before making any real estate investment decisions.

Financing Your Purchase?
If you are using a mortgage to purchase property, you will likely need to be pre-approved in order to have your offer accepted. Our preferred lender can get you started today with a mortgage pre-approval. Go here.