Mississippi 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 Mississippi median property value of $253,000.

Market

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Property Details

Property Type

Purchase Price

Land Percentage($50,600 land)

Capital Improvements

Tax & Timeline

Marginal Tax Rate

Years Held

Depreciation Schedule

$7,360$7,360 total

$7,360$14,720 total

$7,360$22,080 total

$7,360$29,440 total

$7,360$36,800 total

$7,360$44,160 total

$7,360$51,520 total

$7,360$58,880 total

$7,360$66,240 total

$7,360$73,600 total

$7,360$80,960 total

$7,360$88,320 total

$7,360$95,680 total

$7,360$103,040 total

$7,360$110,400 total

$7,360$117,760 total

$7,360$125,120 total

$7,360$132,480 total

$7,360$139,840 total

$7,360$147,200 total

$7,360$154,560 total

$7,360$161,920 total

$7,360$169,280 total

$7,360$176,640 total

$7,360$184,000 total

$7,360$191,360 total

$7,360$198,720 total

$3,680$202,400 total

Mississippi Market Context

Avg Cap Rate

7.2%

Median Price

$253K

Property Tax

0.54%

Vacancy Rate

7.6%

Local Factors

-Very affordable entry prices but high insurance due to hurricane and storm exposure
-Limited population growth constrains appreciation potential
-Gulf Coast areas face significant flood and wind insurance requirements

Sources

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

Annual Depreciation

$7,360

$613/mo

Modest Savings

Annual Tax Savings$1,766

Depreciable Basis$202,400

Building Value$202,400

Land Value$50,600

Useful Life27.5 years

Total Deductions Taken$7,360

Total Tax Savings$1,766

Years Remaining27 of 27.5

Land (Non-depreciable)$50,600

Depreciation Taken$7,360

Remaining Basis$195,040

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 Mississippi. See how it compounds.

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