Follow the default numbers.
With total acquisition basis of $350,000, the model gives first-year depreciation: $4,667.
The formula is building basis ÷ recovery years; first year uses mid-month convention. Open the breakdown to trace expenses and assumptions. Change one input at a time to see how your decision changes. This example uses scenario inputs; it is not an offer, tax bill, appraisal or legal determination.
Land cannot be depreciated
The depreciable building basis is total qualifying acquisition basis less the allocated land value. Allocation needs support from appraisals, assessment data or other reasonable evidence. Borrowing does not change the building’s depreciable basis. Acquisition costs, later improvements and a conversion from personal to rental use can create separate basis questions or schedules.
Placed in service is the important month
A building begins depreciation when it is ready and available for its intended rental use. That can be later than the purchase closing. Residential rental buildings generally use a twenty-seven-and-a-half-year GDS recovery period; nonresidential real property uses thirty-nine years. This model applies straight-line depreciation with the mid-month convention. It is not an ADS or special-election calculator.
The last year reconciles the building basis
The first year gives half a month for the service month plus the remaining months in the year. Full years follow, and the final schedule row deducts the unrecovered basis. The table assumes continuous service and no sale; disposal can change the final allowed amount. Improvements placed in service later need their own dates and schedules.
Depreciation has consequences at sale
The deduction can reduce taxable rental income when usable under the applicable limitations. It also reduces adjusted basis and can affect gain on disposition. The recapture calculator uses allowed or allowable depreciation, so missing a deduction does not necessarily avoid the eventual basis adjustment. Keep the schedule with acquisition and improvement records.
Keep your assumptions with the result
Save the calculation to your deal file to reuse compatible inputs in another tool. The file stays in this browser on this device. Download the CSV to open the complete inputs, results and schedule in Excel or Google Sheets. Use PDF to print the report or save it as a PDF. A share link includes entered financial figures in its URL, so use it only with people you intend to share those numbers with.