Massachusetts 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 Massachusetts median property value of $615,000.

Market

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Property Details

Property Type

Purchase Price

Land Percentage($123,000 land)

Capital Improvements

Tax & Timeline

Marginal Tax Rate

Years Held

Depreciation Schedule

$17,891$17,891 total

$17,891$35,782 total

$17,891$53,673 total

$17,891$71,564 total

$17,891$89,455 total

$17,891$107,345 total

$17,891$125,236 total

$17,891$143,127 total

$17,891$161,018 total

$17,891$178,909 total

$17,891$196,800 total

$17,891$214,691 total

$17,891$232,582 total

$17,891$250,473 total

$17,891$268,364 total

$17,891$286,255 total

$17,891$304,145 total

$17,891$322,036 total

$17,891$339,927 total

$17,891$357,818 total

$17,891$375,709 total

$17,891$393,600 total

$17,891$411,491 total

$17,891$429,382 total

$17,891$447,273 total

$17,891$465,164 total

$17,891$483,055 total

$8,945$492,000 total

Massachusetts Market Context

Avg Cap Rate

4.5%

Median Price

$615K

Property Tax

0.95%

Vacancy Rate

3.2%

Local Factors

-Very low vacancy rates driven by Boston's education and biotech employment centers
-Strict tenant protection laws and potential rent stabilization efforts
-High barrier to entry but strong appreciation potential in eastern MA

Sources

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

Annual Depreciation

$17,891

$1,491/mo

Solid Savings

Annual Tax Savings$4,294

Depreciable Basis$492,000

Building Value$492,000

Land Value$123,000

Useful Life27.5 years

Total Deductions Taken$17,891

Total Tax Savings$4,294

Years Remaining27 of 27.5

Land (Non-depreciable)$123,000

Depreciation Taken$17,891

Remaining Basis$474,109

What does this mean?

You're getting meaningful tax savings from depreciation. This phantom expense reduces your taxable rental income without costing you anything out of pocket.

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 Massachusetts. See how it compounds.

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