Based on IRS Publications 527 and 946, read October 2026

Rental Property Depreciation
Recovery Periods, Asset by Asset

The building is 27.5 years. But a rental is not only a building: the roof, the new furnace, the carpet, the dishwasher and the driveway each have their own recovery period. This table lists the common rental assets, the period and method the IRS assigns, and how to work out the first year.

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Short answer: four recovery periods cover almost every rental asset

Under MACRS, the general depreciation system the IRS uses for rentals, a residential rental building and anything that becomes part of it (roof, HVAC, plumbing, wiring, windows) is 27.5 years. A commercial building and its components are 39 years. Land improvements such as fences, driveways and landscaping are 15 years. Appliances, carpet and furniture used in a residential rental are 5 years.

Land itself never depreciates. Buildings use straight-line with a mid-month convention; personal property and land improvements use declining-balance methods with a half-year convention unless more than 40% of the year's purchases land in the last quarter.

Recovery period table for common rental property assets

AssetGDS recovery periodMethod and conventionNotes
The building and its structural components
Residential rental building (house, condo, duplex, apartment building)27.5 yearsStraight-line, mid-monthResidential means 80% or more of gross rent comes from dwelling units.
Nonresidential building (office, retail, warehouse)39 yearsStraight-line, mid-monthApplies to mixed-use buildings below the 80% dwelling-unit test.
New roof27.5 years (39 commercial)Straight-line, mid-monthA structural component, so it follows the building.
Furnace, central air, water heater, ductwork27.5 years (39 commercial)Straight-line, mid-monthBuilding systems follow the building.
Windows, doors, siding, plumbing, electrical27.5 years (39 commercial)Straight-line, mid-monthIncludes rewiring and repiping.
Kitchen or bathroom remodel (cabinets, counters, tile)27.5 yearsStraight-line, mid-monthBuilt-in work is part of the building; freestanding appliances are separate.
Interior improvement to a commercial building (qualified improvement property)15 years150% declining balance, half-year (straight-line if you elect it or use ADS)Nonresidential only; excludes enlargements, elevators and structural framework.
Land improvements
Fences, sidewalks, driveways, parking areas15 years150% declining balance, half-yearLand itself is not depreciable.
Shrubs and trees next to the building15 years150% declining balance, half-yearGeneral grading and clearing of land is part of the land.
Personal property used in the rental
Refrigerator, range, dishwasher, washer, dryer5 years200% declining balance, half-yearResidential rental use.
Carpet (tacked, not glued)5 years200% declining balance, half-yearGlued-down flooring is usually treated as part of the building.
Furniture in a furnished rental5 years200% declining balance, half-yearOffice furniture you use to run the business is 7 years.
Computer, printer5 years200% declining balance, half-yearBusiness use percentage applies.
Car or light truck5 years200% declining balance, half-yearOr skip depreciation and use the standard mileage rate.

If you elect the alternative depreciation system (ADS), required for some taxpayers who elect out of the business interest limit, residential rental buildings placed in service after 2017 use 30 years (40 years if placed in service before 2018) and nonresidential buildings use 40 years. Most small landlords use GDS.

Worked example: a $300,000 rental placed in service in July, plus a new fridge

Diagram of rental property depreciation recovery: 240,000 dollar building basis over 27.5 years, 4,000 dollars in the first year and 8,727 dollars a year after
Depreciating a $240,000 residential rental building. Diagram by SealedFolio.

You buy a single-family rental for $300,000 including closing costs you must capitalize. The county assessment splits value 20% land and 80% building, so your depreciable building basis is $240,000. It is ready and listed for rent on July 10.

  1. Full-year amount. $240,000 divided by 27.5 is $8,727.27.
  2. Mid-month for year one. A July placed-in-service date counts as July 15, so you get 5.5 months: $8,727.27 times 5.5 / 12 is $4,000. That matches the IRS table rate of 1.667%.
  3. Years two to 28. $8,727 each year.
  4. Year 29. The remaining half month, about $364, which brings the total to $240,000.
  5. The fridge. A $1,500 refrigerator bought for the unit is 5-year property. Under 200% declining balance with the half-year convention, year one is 20%, or $300. Many landlords instead deduct an item this size in full under the de minimis safe harbor.
Month placed in serviceYear-one rate, 27.5-year propertyYear-one deduction on $240,000
January3.485%$8,364
April2.576%$6,182
July1.667%$4,000
October0.758%$1,818
December0.152%$364

Depreciation starts when the property is ready and available for rent, not when the first tenant moves in. If the property sits empty for two months after renovation while you advertise, depreciation has already started.

Bonus depreciation and cost segregation change the timing, not the class

Assets with a recovery period of 20 years or less, which includes the 5-year and 15-year items above, can qualify for bonus depreciation. The 2025 federal tax law restored 100% bonus depreciation for qualifying property acquired after January 19, 2025, so in many cases the fridge, the carpet and the new fence can be written off in the year they are placed in service. The building and its structural components (27.5 and 39 years) never qualify.

A cost segregation study is an engineering report that splits the purchase price of a building into these classes. It moves value out of the 27.5-year building and into 5-year and 15-year property, so more depreciation lands in the early years. It usually pays off on larger buildings, and the deductions it creates are still subject to the passive activity loss rules.

Whatever you claim is added back when you sell: gain up to the depreciation you took on the building is taxed as unrecaptured section 1250 gain at up to 25%, and on personal property as ordinary income. Our rental property depreciation guide explains recapture.

Keeping the depreciation schedule straight year after year

The trouble with depreciation is not the math, it is remembering. A landlord with three properties and a decade of roofs, furnaces and appliances has dozens of assets, each with its own start date. Lose track and you either miss deductions or overstate them, and the IRS treats depreciation you were entitled to as taken whether you claimed it or not, so it still reduces your basis when you sell.

SealedFolio works out each building's yearly depreciation from its purchase price, land percentage, placed-in-service date and class (27.5-year residential or 39-year commercial), lets you record your own depreciation entries instead when you have a schedule from your preparer or separate assets such as appliances, and carries the year's figure onto Schedule E line 18; Canadian properties use capital cost allowance on the T776 instead. Use the depreciation calculator to check a figure before you record it, and see the 2026 rental property tax deductions guide for everything else that goes on the return. In the first year, SealedFolio counts the month the property was placed in service as a full month, while the IRS mid-month convention counts it as half a month, so the app's first-year figure runs slightly higher than the worked example above. For the first year, check the number against your tax software or enter the exact amount as a depreciation entry.

Depreciation and Schedule E in one local app

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This guide explains general federal rules and is not tax advice. Confirm your own asset classes and elections with a tax professional.

Rental property recovery periods: frequently asked questions

What is the depreciation life of a roof on a rental property?

A new roof on a residential rental building is a structural component of the building, so it is depreciated over 27.5 years using the straight-line method. On a commercial building it is 39 years.

How long do you depreciate carpet and appliances in a rental?

Carpet that is tacked down rather than glued, and appliances such as a refrigerator, range or washer used in a residential rental, are 5-year property under the IRS general depreciation system.

Is landscaping depreciable on a rental property?

Shrubs and trees planted next to the building, fences, sidewalks, driveways and parking areas are land improvements with a 15-year recovery period. The land itself, and general grading of the land, is not depreciable.

What is the first-year depreciation on a residential rental?

Residential rental buildings use the mid-month convention, so the first year depends on the month the property is placed in service. A building placed in service in January gets 3.485% of its basis; one placed in service in July gets 1.667%.

Does SealedFolio track the recovery period for each asset?

SealedFolio calculates building depreciation for each property from its purchase price, land percentage, placed-in-service date and residential or commercial class, or uses the depreciation entries you record, and puts the result on Schedule E line 18. Its free depreciation calculator works out the yearly amount for a building or improvement so you can check the figure.