How much can I depreciate my rental property?

By convention, most U.S. residential rental property is typically depreciated at a rate of 3.636% each year for 27.5 years. Only the value of buildings can be depreciated; you cannot depreciate the land buildings are built on.

How to calculate depreciation expense for rental property?

The period you can claim depreciation is called the recovery period. You can determine your annual depreciation amount by dividing your property's cost basis and value of your property over the IRS-specified period of time, i.e., 27.5 or 39 years.

Who prepares the depreciation schedule?

A qualified Quantity Surveyor produces these schedules, detailing components eligible for depreciation, such as capital works allowances and plant and equipment, tailored for new and newer investment properties. Put simply, depreciation is the decrease in an asset's value over time due to natural wear and tear.

What is the best depreciation method for rental property?

The straight-line method is the most commonly used method for calculating rental property depreciation. This method assumes that the property's value decreases consistently each year over its useful life.

How do you create a depreciation schedule?

You'll need three columns: The first column registers the depreciation deduction (aka depreciation expense) you plan to take each year. The second column shows the depreciation that has accumulated at the end of each year. The third column logs the book value of the asset at the end of each year.

How to set up a depreciation schedule for rental property?

To calculate the annual amount of depreciation on a property, you'll divide the cost basis by the property's useful life. In our example, let's use our existing cost basis of $206,000 and divide by the GDS life span of 27.5 years. Your depreciation would be $7,490.91 per year, or 3.6% of the loan amount.

How do I get a depreciation schedule for my rental property?

To calculate the annual amount of depreciation on a property, you'll divide the cost basis by the property's useful life. In our example, let's use our existing cost basis of $206,000 and divide by the GDS life span of 27.5 years. Your depreciation would be $7,490.91 per year, or 3.6% of the loan amount.

घर
कार्यशीलता सूचकांक

Arrange your Timelines efficiently with Rental Property Depreciation Schedule Template builder solution

Drop document here to upload

Up to 100 MB for PDF and up to 25 MB for DOC, DOCX, RTF, PPT, PPTX, JPEG, PNG, JFIF, XLS, XLSX or TXT

Based on 12500+ reviews

अंतिम बार अद्यतन किया गया Dec 27, 2025

Document creation is just the beginning

Learn more about security

Create and edit documents with a trusted solution

Try easy-to-use tools for all your document management needs.

Upload your document

pdfFiller scores top ratings on review platforms

First time I've ever used it. It was simple enough for me. I love it! I was stuck filling out my w-2's & w-3's. I had purchased what I needed & was looking for a great program to film them out online & print. And PDF made it possible. Thanks

Sharon W

After some heartbreak at having lost the doc I was working on, the team at pdffiller managed to retrieve it for me. All those tears later, I am ecstatic to have my hard work not be for nothing!

Melodie G

I am using the service to help with…updating documents I am using the service to help with documentation and transferring data. I was pleased to have good customer service, when I needed it, with prompt response time and helpful tools to fix the problem.

Jennifer Rappole

PDFfiller I am happy with the software and it helps me to speed up my paperwork and save my time. What I like most about PDFfiller is that it is very easy to fill out the form electronically. It fills out any blank space of the PDF form from the loaded document. No negative review on this software. The software is so easy and simple to use and I use it at work when I need it.

Tony M.

Just started using it . Too early, but looks Good! 10/2/2020 I have been using PDFfiller and it is great! I am using my own PDF forms, therefore, I would rather browse the files on my computer rather drag and drop. But this is a personal preference. The drag and drop does work. I am using it to prepare and send contracts to customers and it is well accepted. I have attempted to do this with other popular word processing and spreadsheets and they are very complicated and don't work for me. I like PDFfiller very much.

Les C

What do you like best? Easy to navigate, loads quickly. I usually don't have a lot of time in the field to wait for loading. What do you dislike? Once I was proficient in the navigation, I was good. What problems are you solving with the product? What benefits have you realized? I get a fast turnaround on documents that need signed. I can also verify that the documents have been signed while out in the field.

Consultant in Information Services

Show more Show less

Watch pdfFiller eSignatures in action

Check out a quick video tutorial that shows how to create and place your signature or send a document for signing.

Related features

List of extra features

FAQs

If you can't find what you're looking for, please contact us anytime!

Contact Support

Create and edit documents with a trusted solution

Try easy-to-use tools for all your document management needs.

Upload your document