Depreciation on a rental
Building cost ÷ 27.5
Can You Write Off Depreciation on a Rental?
Short answer: Yes: residential rental buildings (not land) are depreciated over 27.5 years starting the month placed in service.
Depreciation is recaptured at up to 25% when you sell.
Records to keep: Keep leases, receipts, a log of repairs vs improvements, mileage to the property, and closing statements.
BW-B23-00638
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Depreciation on a rental
Building cost ÷ 27.5
Real Estate / Landlords / Property Managers / Agents
Equipment & Gear
Rental Property Write-Offs
Yes: residential rental buildings (not land) are depreciated over 27.5 years starting the month placed in service.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: residential rental buildings (not land) are depreciated over 27.5 years starting the month placed in service. Depreciation is recaptured at up to 25% when you sell.
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- Rental Property Write-Offs
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