Indiana Depreciation Calculator

Real estate depreciation lets you deduct the cost of a building over its useful life — 27.5 years for residential property. Pre-filled with Indiana median property value of $255,000.

Market

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Property Details

Property Type

Purchase Price

Land Percentage($51,000 land)

Capital Improvements

Tax & Timeline

Marginal Tax Rate

Years Held

Depreciation Schedule

$7,418$7,418 total

$7,418$14,836 total

$7,418$22,255 total

$7,418$29,673 total

$7,418$37,091 total

$7,418$44,509 total

$7,418$51,927 total

$7,418$59,345 total

$7,418$66,764 total

$7,418$74,182 total

$7,418$81,600 total

$7,418$89,018 total

$7,418$96,436 total

$7,418$103,855 total

$7,418$111,273 total

$7,418$118,691 total

$7,418$126,109 total

$7,418$133,527 total

$7,418$140,945 total

$7,418$148,364 total

$7,418$155,782 total

$7,418$163,200 total

$7,418$170,618 total

$7,418$178,036 total

$7,418$185,455 total

$7,418$192,873 total

$7,418$200,291 total

$3,709$204,000 total

Indiana Market Context

Avg Cap Rate

Median Price

$255K

Property Tax

0.76%

Vacancy Rate

9.9%

Local Factors

-Property tax caps (1% for homestead) provide predictable expenses for investors
-Indianapolis is a popular turnkey rental market with strong cash flow
-Affordable entry prices attract out-of-state investors

Sources

World Population Review – Median Home Price FL Probate Law – Property Tax Rates (ACS Data)The Hartford – Insurance Rates iPropertyManagement – Vacancy Rates

Annual Depreciation

$7,418

$618/mo

Modest Savings

Annual Tax Savings$1,780

Depreciable Basis$204,000

Building Value$204,000

Land Value$51,000

Useful Life27.5 years

Total Deductions Taken$7,418

Total Tax Savings$1,780

Years Remaining27 of 27.5

Land (Non-depreciable)$51,000

Depreciation Taken$7,418

Remaining Basis$196,582

What does this mean?

Your annual depreciation tax savings are modest. This is common for lower-value properties or when land makes up a large portion of the purchase price.

How Real Estate Depreciation Works

Depreciation is one of the most powerful tax benefits of owning rental property. The IRS allows you to deduct the cost of a building (not land) over its useful life — 27.5 years for residential and 39 years for commercial property.

This is called straight-line depreciation because you take equal deductions each year. It's a "paper loss" — your property might be appreciating while you claim it's losing value. That phantom expense offsets rental income and reduces your tax bill.

Keep running the numbers

One calculator rarely tells the whole story.

Depreciation is the silent return in Indiana. See how it compounds.

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