Finance category

Mortgage, loan, investing, tax, and money calculators.

Depreciable Basis Calculator

Depreciable basis = cost of building + acquisition costs + improvements − land value. Land is NOT depreciable. This calculator sizes the correct depreciable amount for Schedule E. Cost segregation studies can further accelerate depreciation by reclassifying 5%-25% of a rental property's basis into 5, 7, or 15-year recovery classes (carpet, appliances, land improvements). Studies cost $4K-Depreciable basis = cost of building + acquisition costs + improvements − land value. Land is NOT depreciable. This calculator sizes the correct depreciable amount for Schedule E.0K but produce Depreciable basis = cost of building + acquisition costs + improvements − land value. Land is NOT depreciable. This calculator sizes the correct depreciable amount for Schedule E.0K-$80K of first-year depreciation acceleration on typical investment properties. Bonus depreciation through 2026 phases down 80% → 60% → 40% → 20% → 0% by 2027.

Purchase price

Land value % (from tax assessor)

Acquisition costs (title, legal, survey)

Capital improvements

Depreciation life years

27.5 residential, 39 commercial

Depreciable basis

$280,000

Annual depreciation

$10,182

First-year (mid-year convention)

$5,091

Land value (non-depreciable)

$64,000

Building value

$256,000

How the math works

$320K purchase, 20% land = $64K. $256K building + $9K acq + $15K improvements = $280K depreciable. Over 27.5 years = $10,182/yr annual depreciation.

Hire a CPA to do cost segregation on larger properties — accelerates depreciation by pulling specific components (appliances, flooring, fixtures) into shorter 5-15 year classes. Can double first-year depreciation.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Depreciable Basis Calculator is built to give a quick, browser-based estimate for depreciable basis. Depreciable basis = cost of building + acquisition costs + improvements − land value. Land is NOT depreciable. This calculator sizes the correct depreciable amount for Schedule E. Cost segregation studies can further accelerate depreciation by reclassifying 5%-25% of a rental property's basis into 5, 7, or 15-year recovery classes (carpet, appliances, land improvements). Studies cost $4K-Depreciable basis = cost of building + acquisition costs + improvements − land value. Land is NOT depreciable. This calculator sizes the correct depreciable amount for Schedule E.0K but produce Depreciable basis = cost of building + acquisition costs + improvements − land value. Land is NOT depreciable. This calculator sizes the correct depreciable amount for Schedule E.0K-$80K of first-year depreciation acceleration on typical investment properties. Bonus depreciation through 2026 phases down 80% → 60% → 40% → 20% → 0% by 2027. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the depreciable basis result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this depreciable basis estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

How to Use

Enter purchase price, land value (from tax assessor), acquisition costs, and improvements.
See depreciable basis and annual depreciation.

Frequently Asked Questions

How do I find land value?

Property tax bill usually shows land/building split. Or appraisal. Or area typical: 20-30% land for urban, 10-20% for suburban SFR. Don't zero out land — IRS will audit.

27.5 or 39 years?

Residential rental: 27.5 years. Commercial: 39 years. MACRS applies, first year prorated based on month placed in service.

Improvements depreciate?

Yes, capital improvements (roof, HVAC, kitchen remodel) depreciate separately — 27.5 years each from date placed in service. Repairs are deducted as expense not capitalized.