Free Depreciation Calculator for Real Estate Investors

Yukti's free depreciation calculator handles real estate depreciation scenarios. Enter the property purchase price, estimated land value (typically 15-25% of total price for residential, varies for commercial), and property type. The calculator separates the depreciable basis from land and produces a year-by-year depreciation schedule showing the annual deduction and remaining basis.

Cost segregation modeling is a significant value-add for real estate investors. A standard depreciation schedule depreciates the entire building over 27.5 or 39 years. A cost segregation study identifies building components (HVAC, plumbing, electrical, flooring, paving) that can be classified as personal property (5-7 year depreciation) or land improvements (15-year depreciation). The calculator helps you model the impact of reclassifying a percentage of the building cost to shorter lives.

Depreciation recapture is the trade-off that investors must understand. When you sell a property, the IRS recaptures depreciation at a 25% tax rate. The calculator estimates depreciation recapture liability at different points in the holding period so you can evaluate whether a 1031 exchange (which defers recapture) makes financial sense.

When your real estate portfolio needs automated depreciation tracking across dozens or hundreds of properties, Yukti ERP calculates depreciation by property, tracks cost segregation components, and provides the data needed for tax return preparation and investment analysis.