Tennessee 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 Tennessee median property value of $380,000.

Market

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Property Details

Property Type

Purchase Price

Land Percentage($76,000 land)

Capital Improvements

Tax & Timeline

Marginal Tax Rate

Years Held

Depreciation Schedule

$11,055$11,055 total

$11,055$22,109 total

$11,055$33,164 total

$11,055$44,218 total

$11,055$55,273 total

$11,055$66,327 total

$11,055$77,382 total

$11,055$88,436 total

$11,055$99,491 total

$11,055$110,545 total

$11,055$121,600 total

$11,055$132,655 total

$11,055$143,709 total

$11,055$154,764 total

$11,055$165,818 total

$11,055$176,873 total

$11,055$187,927 total

$11,055$198,982 total

$11,055$210,036 total

$11,055$221,091 total

$11,055$232,145 total

$11,055$243,200 total

$11,055$254,255 total

$11,055$265,309 total

$11,055$276,364 total

$11,055$287,418 total

$11,055$298,473 total

$5,527$304,000 total

Tennessee Market Context

Avg Cap Rate

5.8%

Median Price

$380K

Property Tax

0.46%

Vacancy Rate

8.2%

Local Factors

-No state income tax on wages makes it attractive for renters and investors
-Nashville is a top migration destination with strong job growth but rising prices
-Memphis offers high cash-flow potential but requires active management

Sources

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

Annual Depreciation

$11,055

$921/mo

Solid Savings

Annual Tax Savings$2,653

Depreciable Basis$304,000

Building Value$304,000

Land Value$76,000

Useful Life27.5 years

Total Deductions Taken$11,055

Total Tax Savings$2,653

Years Remaining27 of 27.5

Land (Non-depreciable)$76,000

Depreciation Taken$11,055

Remaining Basis$292,945

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 Tennessee. See how it compounds.

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