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how to determine depreciation on rental property

1Answers
LenaFitz
11/28/2025, 06:57:40 AM

To calculate depreciation on a rental property, first determine the depreciable basis by subtracting the land value from the total purchase price. Then apply the Modified Accelerated Cost Recovery System (MACRS) using the straight-line method over the IRS-specified 27.5-year recovery period for residential property, allowing consistent annual deductions to reduce taxable income.

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