27.5-year property · Straight line, mid-month
Includes: Rental houses, apartments and their structural components (roof, HVAC, wiring, plumbing). Watch: Take the land out first: only the building is depreciated. Improvements such as a new roof are depreciated over 27.5 years from when they are placed in service.
| Line 12 · Section 179 expense | $0.00 |
|---|---|
| Line 14 · Special (bonus) depreciation | $0.00 |
| Line 19 · MACRS, 27.5-year property | $2,083.33 |
| Tax year | Rate | Depreciation | Accumulated | Basis left |
|---|---|---|---|---|
| 2026 | 0.758% | $2,083.33 | $2,083.33 | $272,916.67 |
| 2027 | 3.636% | $10,000.00 | $12,083.33 | $262,916.67 |
| 2028 | 3.636% | $10,000.00 | $22,083.33 | $252,916.67 |
| 2029 | 3.636% | $10,000.00 | $32,083.33 | $242,916.67 |
| 2030 | 3.636% | $10,000.00 | $42,083.33 | $232,916.67 |
| 2031 | 3.636% | $10,000.00 | $52,083.33 | $222,916.67 |
| 2032 | 3.636% | $10,000.00 | $62,083.33 | $212,916.67 |
| 2033 | 3.636% | $10,000.00 | $72,083.33 | $202,916.67 |
| 2034 | 3.636% | $10,000.00 | $82,083.33 | $192,916.67 |
| 2035 | 3.636% | $10,000.00 | $92,083.33 | $182,916.67 |
| 2036 | 3.636% | $10,000.00 | $102,083.33 | $172,916.67 |
| 2037 | 3.636% | $10,000.00 | $112,083.33 | $162,916.67 |
| 2038 | 3.636% | $10,000.00 | $122,083.33 | $152,916.67 |
| 2039 | 3.636% | $10,000.00 | $132,083.33 | $142,916.67 |
| 2040 | 3.636% | $10,000.00 | $142,083.33 | $132,916.67 |
| 2041 | 3.636% | $10,000.00 | $152,083.33 | $122,916.67 |
| 2042 | 3.636% | $10,000.00 | $162,083.33 | $112,916.67 |
| 2043 | 3.636% | $10,000.00 | $172,083.33 | $102,916.67 |
| 2044 | 3.636% | $10,000.00 | $182,083.33 | $92,916.67 |
| 2045 | 3.636% | $10,000.00 | $192,083.33 | $82,916.67 |
| 2046 | 3.636% | $10,000.00 | $202,083.33 | $72,916.67 |
| 2047 | 3.636% | $10,000.00 | $212,083.33 | $62,916.67 |
| 2048 | 3.636% | $10,000.00 | $222,083.33 | $52,916.67 |
| 2049 | 3.636% | $10,000.00 | $232,083.33 | $42,916.67 |
| 2050 | 3.636% | $10,000.00 | $242,083.33 | $32,916.67 |
| 2051 | 3.636% | $10,000.00 | $252,083.33 | $22,916.67 |
| 2052 | 3.636% | $10,000.00 | $262,083.33 | $12,916.67 |
| 2053 | 3.636% | $10,000.00 | $272,083.33 | $2,916.67 |
| 2054 | 1.061% | $2,916.67 | $275,000.00 | $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.
Placed in service March 2026, 100% business use, no section 179 or bonus.
| Tax year | Depreciation |
|---|---|
| 2026 | $7,917 |
| 2027 | $10,000 |
| 2028 | $10,000 |
| 2029 | $10,000 |
| 2030 | $10,000 |
| 2031 | $10,000 |
| 2032 | $10,000 |
| 2033 | $10,000 |
| 2034 | $10,000 |
| 2035 | $10,000 |
| 2036 | $10,000 |
| 2037 | $10,000 |
| 2038 | $10,000 |
| 2039 | $10,000 |
| 2040 | $10,000 |
| 2041 | $10,000 |
| 2042 | $10,000 |
| 2043 | $10,000 |
| 2044 | $10,000 |
| 2045 | $10,000 |
| 2046 | $10,000 |
| 2047 | $10,000 |
| 2048 | $10,000 |
| 2049 | $10,000 |
| 2050 | $10,000 |
| 2051 | $10,000 |
| 2052 | $10,000 |
| 2053 | $7,083 |
Source: Pub 946 chapter 4, residential rental property (27.5 years GDS, 30 years ADS); Table A-6. IRS Publication 946.
Residential rental property are 27.5-year property under MACRS (the General Depreciation System), depreciated with straight line, mid-month. Under the Alternative Depreciation System the period is 30 years. Source: Pub 946 chapter 4, residential rental property (27.5 years GDS, 30 years ADS); Table A-6.
Not with section 179 or bonus depreciation: residential rental property are depreciated over 27.5-years. Take the land out first: only the building is depreciated. Improvements such as a new roof are depreciated over 27.5 years from when they are placed in service.
With no section 179 or bonus, placed in service in March 2026: $7,917 in 2026, $10,000 in 2027, $10,000 in 2028, $10,000 in 2029, and so on. The calculator above works it out for your own cost, date and business use.
Take the land out first: only the building is depreciated. Improvements such as a new roof are depreciated over 27.5 years from when they are placed in service.