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Commercial depreciation

39-year property · Straight line, mid-month

Recovery period39 yearsMACRS (GDS)
MethodStraight linemid-month
Section 179No2026 limit $2,560,000
Bonus depreciationNobuildings and structural parts
ADS period40 yearsif you must or elect to

Includes: Offices, stores, warehouses, factories and their structural components. Watch: Take the land out first. Interior improvements made after the building was placed in service can be 15-year qualified improvement property instead.

Work out your own

Deduction in 2026$4,173.00
Section 179$0.00
Bonus$0.00
Regular MACRS, year 1$4,173.00

Form 4562

Line 12 · Section 179 expense$0.00
Line 14 · Special (bonus) depreciation$0.00
Line 19 · MACRS, 39-year property$4,173.00

Year by year · Pub 946 Table A-7a (39-year, mid-month)

Tax yearRateDepreciationAccumulatedBasis left
20260.535%$4,173.00$4,173.00$775,827.00
20272.564%$19,999.20$24,172.20$755,827.80
20282.564%$19,999.20$44,171.40$735,828.60
20292.564%$19,999.20$64,170.60$715,829.40
20302.564%$19,999.20$84,169.80$695,830.20
20312.564%$19,999.20$104,169.00$675,831.00
20322.564%$19,999.20$124,168.20$655,831.80
20332.564%$19,999.20$144,167.40$635,832.60
20342.564%$19,999.20$164,166.60$615,833.40
20352.564%$19,999.20$184,165.80$595,834.20
20362.564%$19,999.20$204,165.00$575,835.00
20372.564%$19,999.20$224,164.20$555,835.80
20382.564%$19,999.20$244,163.40$535,836.60
20392.564%$19,999.20$264,162.60$515,837.40
20402.564%$19,999.20$284,161.80$495,838.20
20412.564%$19,999.20$304,161.00$475,839.00
20422.564%$19,999.20$324,160.20$455,839.80
20432.564%$19,999.20$344,159.40$435,840.60
20442.564%$19,999.20$364,158.60$415,841.40
20452.564%$19,999.20$384,157.80$395,842.20
20462.564%$19,999.20$404,157.00$375,843.00
20472.564%$19,999.20$424,156.20$355,843.80
20482.564%$19,999.20$444,155.40$335,844.60
20492.564%$19,999.20$464,154.60$315,845.40
20502.564%$19,999.20$484,153.80$295,846.20
20512.564%$19,999.20$504,153.00$275,847.00
20522.564%$19,999.20$524,152.20$255,847.80
20532.564%$19,999.20$544,151.40$235,848.60
20542.564%$19,999.20$564,150.60$215,849.40
20552.564%$19,999.20$584,149.80$195,850.20
20562.564%$19,999.20$604,149.00$175,851.00
20572.564%$19,999.20$624,148.20$155,851.80
20582.564%$19,999.20$644,147.40$135,852.60
20592.564%$19,999.20$664,146.60$115,853.40
20602.564%$19,999.20$684,145.80$95,854.20
20612.564%$19,999.20$704,145.00$75,855.00
20622.564%$19,999.20$724,144.20$55,855.80
20632.564%$19,999.20$744,143.40$35,856.60
20642.564%$19,999.20$764,142.60$15,857.40
20652.033%$15,857.40$780,000.00$0.00

Basis = cost × business use · bonus = (basis − §179) × bonus rate · each year = (basis − §179 − bonus) × table rate

IRS Pub 946 tables · §179 and bonus per the One Big Beautiful Bill Act · car limits per §280F and the IRS yearly revenue procedure.

$780,000 of commercial building, year by year

Placed in service March 2026, 100% business use, no section 179 or bonus.

Tax yearDepreciation
2026$15,857
2027$19,999
2028$19,999
2029$19,999
2030$19,999
2031$19,999
2032$19,999
2033$19,999
2034$19,999
2035$19,999
2036$19,999
2037$19,999
2038$19,999
2039$19,999
2040$19,999
2041$19,999
2042$19,999
2043$19,999
2044$19,999
2045$19,999
2046$19,999
2047$19,999
2048$19,999
2049$19,999
2050$19,999
2051$19,999
2052$19,999
2053$19,999
2054$19,999
2055$19,999
2056$19,999
2057$19,999
2058$19,999
2059$19,999
2060$19,999
2061$19,999
2062$19,999
2063$19,999
2064$19,999
2065$4,173

Source: Pub 946 chapter 4, nonresidential real property (39 years GDS, 40 years ADS); Table A-7a. IRS Publication 946.

Frequently asked questions

What is the depreciation life of a commercial building?

Commercial (nonresidential) buildings are 39-year property under MACRS (the General Depreciation System), depreciated with straight line, mid-month. Under the Alternative Depreciation System the period is 40 years. Source: Pub 946 chapter 4, nonresidential real property (39 years GDS, 40 years ADS); Table A-7a.

Can I write off a commercial building in one year?

Not with section 179 or bonus depreciation: commercial (nonresidential) buildings are depreciated over 39-years. Take the land out first. Interior improvements made after the building was placed in service can be 15-year qualified improvement property instead.

How much depreciation is $780,000 of commercial building each year?

With no section 179 or bonus, placed in service in March 2026: $15,857 in 2026, $19,999 in 2027, $19,999 in 2028, $19,999 in 2029, and so on. The calculator above works it out for your own cost, date and business use.

Anything that changes the answer for commercial (nonresidential) buildings?

Take the land out first. Interior improvements made after the building was placed in service can be 15-year qualified improvement property instead.