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how do you figure depreciation on rental property

1Answers
JaylaMarie
11/28/2025, 06:57:41 AM

To calculate depreciation on a rental property, first determine the property's depreciable basis by subtracting the land value from the purchase price. Then, apply the straight-line depreciation method, spreading the cost evenly over the IRS-defined recovery period of 27.5 years for residential rental property. This annual deduction reduces taxable income.

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