New Mexico 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 New Mexico median property value of $357,000.

Market

Browse calculators by state

Property Details

Property Type

Purchase Price

Land Percentage($71,400 land)

Capital Improvements

Tax & Timeline

Marginal Tax Rate

Years Held

Depreciation Schedule

$10,385$10,385 total

$10,385$20,771 total

$10,385$31,156 total

$10,385$41,542 total

$10,385$51,927 total

$10,385$62,313 total

$10,385$72,698 total

$10,385$83,084 total

$10,385$93,469 total

$10,385$103,855 total

$10,385$114,240 total

$10,385$124,625 total

$10,385$135,011 total

$10,385$145,396 total

$10,385$155,782 total

$10,385$166,167 total

$10,385$176,553 total

$10,385$186,938 total

$10,385$197,324 total

$10,385$207,709 total

$10,385$218,095 total

$10,385$228,480 total

$10,385$238,865 total

$10,385$249,251 total

$10,385$259,636 total

$10,385$270,022 total

$10,385$280,407 total

$5,193$285,600 total

New Mexico Market Context

Avg Cap Rate

6.2%

Median Price

$357K

Property Tax

0.61%

Vacancy Rate

6.6%

Local Factors

-Albuquerque and Santa Fe are the primary rental markets with different investor profiles
-National labs (Los Alamos, Sandia) provide stable high-income renter base
-Low property taxes keep holding costs manageable

Sources

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

Annual Depreciation

$10,385

$865/mo

Solid Savings

Annual Tax Savings$2,493

Depreciable Basis$285,600

Building Value$285,600

Land Value$71,400

Useful Life27.5 years

Total Deductions Taken$10,385

Total Tax Savings$2,493

Years Remaining27 of 27.5

Land (Non-depreciable)$71,400

Depreciation Taken$10,385

Remaining Basis$275,215

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 New Mexico. See how it compounds.

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