Cost Recovery (Depreciation) Calculator - Annie Scott Realty Group
Annie Scott Realty Group
Tax Shield Analysis

How much tax shelter can this asset generate?

Model property basis, depreciable basis, and annual depreciation from acquisition and improvement costs.

Why do real estate investors care about Cost Recovery (Depreciation)?

Because it is one of the most powerful tools for tax-advantaged wealth building.

Depreciation is a non-cash expense that lowers taxable income without requiring an equivalent cash outflow, allowing investors to preserve operating cash while reducing tax burden.

Cost Recovery (Depreciation)
Acquisition basis, depreciable basis, and tax deduction dashboard.
Calculator · Depreciation

Cost recovery schedule

Enter acquisition and improvement components to calculate annual depreciation and depreciation rate.

Acquisition Basis
$
$
$
$
$
Capital Improvements
$
$
$
Depreciation Settings
$
⚠ Required fields are missing.
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Results · Live

Depreciation Analysis

Annual depreciation = Depreciable Basis ÷ Recovery Period.

Awaiting your figures

Fill in basis inputs then calculate.

Annual Depreciation
$0
Depreciation
Annual Depreciation Rate %
Depreciable Basis
$0
Annual Depreciation Rate
0.00%
Closing Costs
$0
Total Cost Basis
$0
Depreciable Basis
$0
Closing Costs$0
Beginning Basis$0
Capital Improvements$0
Total Cost Basis$0
Land Value$0
Depreciable Basis$0
Recovery Period0 years
Annual Depreciation$0
Annual Depreciation Rate %0.00%
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Example & Formula · Investor Education

Cost Recovery (Depreciation)

Acquisition and improvement basis walkthrough for annual tax deduction.

Formulas
Closing Costs = Legal Fees + Appraisal & Inspection + Transfer Taxes & Recording + Title Insurance
Beginning Basis = Purchase Price + Closing Costs
Capital Improvements = Structural Renovations + Tenant Improvements + Site Enhancements
Total Cost Basis = Beginning Basis + Capital Improvements
Depreciable Basis = Total Cost Basis − Land Value
Annual Depreciation = Depreciable Basis ÷ Recovery Period
Annual Depreciation Rate % = (Annual Depreciation ÷ Depreciable Basis) × 100
Step 1
Closing Costs
$150,000
Legal + Appraisal + Transfer + Title
Step 2
Beginning Basis
$2,650,000
$2,500,000 + $150,000
Step 3
Capital Improvements
$200,000
Step 4
Total Cost Basis
$2,850,000
$2,650,000 + $200,000
Step 5
Depreciable Basis
$2,300,000
$2,850,000 − $550,000
Step 6
Annual Depreciation
$58,974
$2,300,000 ÷ 39
© Annie Scott Realty Group LLCEstimates only · not financial advice

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