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Taxes
Short Term Rental Airbnb Depreciation Calculator
US • 2026 planning • Depreciation strategy

Short‑Term Rental Depreciation Calculator

Estimate STR (Airbnb/VRBO) depreciation deductions: building MACRS (mid‑month), optional 5/7/15‑year components, bonus depreciation, and a tax‑savings view.

Inputs

Enter your cost basis and how you use the property. The calculator builds a 10‑year schedule.

Business‑use allocation (simplified)
Rental‑use factor: 92.3% • Area factor: 100.0% • Combined business use: 92.3%
Cost segregation components (optional, planning)
Bonus & Section 179 (simplified)
Defaults are editable. Actual eligibility and limits can depend on income, services, and elections.
Personal property convention: Half‑year (Q4 share 0.0%)
Tax savings view (federal, simplified)

Year‑1 estimate

Total cost basis (purchase + closing)
$510,000
Land excluded separately.
Building basis (before business‑use)
$410,000
Building basis = (purchase + closing) − land.
Business‑use fraction applied
92.3%
Year‑1 depreciation (building)
$13,188.81
Year‑1 depreciation (improvements)
$0.00
Year‑1 deductions (5/7/15‑year + bonus/179)
$9,969.23
Total Year‑1 depreciation deduction (estimate)
$23,158.04
Estimated federal tax saved (Year‑1)
$5,557.93
Using marginal rate: 24.0%

10‑year depreciation schedule (summary)

2026
$23,158.04
Building $13,188.81 • Improvements $0.00 • 5/7/15‑year $9,969.23
2027
$20,851.47
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $7,089.23
2028
$18,015.78
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $4,253.54
2029
$16,952.39
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $3,190.15
2030
$16,952.39
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $3,190.15
2031
$13,762.24
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $0.00
2032
$13,762.24
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $0.00
2033
$13,762.24
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $0.00
2034
$13,762.24
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $0.00
2035
$13,762.24
Building $13,762.24 • Improvements $0.00 • 5/7/15‑year $0.00

Personal property breakdown (Year‑1)

Half‑year • 2026
$9,969.23
§179 $0.00 • Bonus $5,538.46 • MACRS $4,430.77

Recapture planning note (simplified)

Depreciation can increase taxable gain on sale. A rough Year‑1 recapture view (not a filing calculation):

Real property depreciation × 25% (unrecaptured 1250 max rate)
$3,297.20
Personal property depreciation × marginal rate (rough)
$2,392.62
Actual recapture depends on classification, sale price, and your filing details.
Calculator inputs stay on your device (local processing).

Disclaimer: All calculators on this website are provided for informational and illustrative purposes only. The results do not constitute professional advice (including legal, tax, financial, medical, or other advice). Despite careful programming, we assume no liability for the accuracy, completeness, or timeliness of the results. For matters requiring professional advice, we recommend consulting an appropriate specialist (e.g., a tax advisor, lawyer, accountant, or physician).

Notes & tables

What this calculator does (and what it doesn’t)


This tool estimates US federal depreciation deductions for a short‑term rental property and related components.


It includes:

•Building depreciation using **MACRS straight‑line** with the **mid‑month convention** (27.5‑year residential rental by default).
•Optional “cost segregation” components modeled as common **5‑year / 7‑year / 15‑year** property with standard MACRS percentage tables (planning-grade).
•Optional bonus depreciation and a simplified **Section 179 election** input (for qualified shorter‑life property; simplified).
•Business‑use allocation based on rental vs personal‑use days and an optional % of the property used for rental.

It does not:

•file your taxes, decide eligibility, or replace professional advice
•include state taxes, AMT, NIIT, QBI, passive‑loss limits, or vacation‑home ordering rules in full detail
•determine whether your STR is a “trade or business” (it only estimates depreciation amounts)

Core concepts (quick definitions)


•Placed in service: the date the unit is **ready and available** for rent (often later than closing).
•Depreciable basis: your cost basis **minus land value** (land is not depreciable), then adjusted for business use.
•Mid‑month convention: real property depreciation starts at the **midpoint of the placed‑in‑service month**, creating a partial first and last year.
•Cost segregation (planning view): carving out shorter‑life components (often 5/7/15‑year) to accelerate deductions. Real‑world allocations typically come from a study.

Bonus depreciation (2026): why it matters


Bonus depreciation generally applies to qualified property with a recovery period of 20 years or less (not the building itself).


This calculator uses a default 2026 bonus rate based on the widely used phase‑down schedule (and shows it as an editable input), because legislation can change.


Sources to verify details in your situation:

•IRS Publication 527 (rental property depreciation basics)
•IRS Publication 946 (MACRS / special depreciation / conventions)
•IRS Form 4562 (depreciation reporting)

Example (intuition check)


Input
Value
Purchase price
$500,000
Closing costs added to basis
$10,000
Land value
$100,000
Placed in service
2026‑06‑10
Rental days / Personal days
240 / 20
Rental area
100%
5‑year components (furniture, etc.)
$30,000
Bonus rate
20%

The calculator:

•removes land from basis
•applies the rental‑use factor (240 / 260)
•computes building depreciation using mid‑month convention
•computes 5‑year MACRS + (optional) bonus/179 on the 5‑year portion

Related tools (internal linking)


•Planning quarterly payments? [Self‑Employment Quarterly Tax Estimator](/us/taxes/self-employment-quarterly-tax-estimator)
•Estimating refund/owed? [Tax Refund Calculator](/us/taxes/tax-refund-estimator)
•Comparing deductions? [Standard vs Itemized](/us/taxes/standard-vs-itemized-deductions)

FAQ (7)

Is an Airbnb/short‑term rental depreciated over 27.5 years or 39 years?

Most STRs are still “residential rental real property” (27.5‑year MACRS) because the classification is based on the property type (a dwelling unit), not the average stay length. 39‑year MACRS generally applies to nonresidential/commercial real property. If your property is not a dwelling unit (or is truly commercial), switch the property type in the calculator.

What does “placed in service” mean for depreciation?

Placed in service is when the property is ready and available for rent (e.g., listing is live and the unit is rentable), not necessarily the closing date. It drives the first‑year mid‑month depreciation fraction.

Why do you ask for land value?

Land is not depreciable. Depreciation is calculated on the building (and eligible components), so the calculator removes land value from the cost basis before computing deductions.

Does cost segregation increase total depreciation?

No—over the life of the property, total depreciation is still based on the depreciable basis. Cost segregation mainly changes timing: more deductions earlier (and less later), which can improve cashflow or enable planning strategies.

How accurate are the 5/7/15‑year schedules here?

They use standard MACRS percentage tables with the half‑year convention for a planning‑grade schedule. Real filings can differ due to mid‑quarter convention, partial‑year timing, alternative systems, or specific asset classifications.

Does bonus depreciation apply to the building?

Generally, no. Bonus depreciation typically applies to qualified property with a recovery period of 20 years or less (often certain personal property or land improvements), not the structural building itself.

What about depreciation recapture when I sell?

Depreciation can increase taxable gain on sale via recapture rules. This calculator shows a simple planning estimate, but actual recapture depends on your sale price, holding period, allocation, and how assets were classified.