Free tool · Real estate

Rental Property Depreciation Calculator

Annual depreciation, the paper loss it creates, and how much of the $25,000 passive-loss allowance you can actually use this year after the MAGI phaseout — the part most rental owners get wrong.

Usable passive loss this year

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How your paper loss splits

Annual depreciation

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Paper loss

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$25k allowance (after phaseout)

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Recovery period

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Depreciation = building basis ÷ recovery years—

Paper income = cash flow − depreciation—

Paper loss—

Allowance phaseout—

$25k allowance after phaseout—

Usable this year = min(loss, allowance)—

Suspended (carried forward)—

The $25,000 special allowance phases out $1 for every $2 of MAGI between $100,000 and $150,000. MAGI over $150,000 → allowance fully phased out; suspended losses carry forward to future years (or release when you sell). Real-estate professionals deduct rental losses in full as non-passive — no $25k cap.

One slice of the picture

Track your PAL carryforward across years automatically — with your depreciation schedule and taxes in ClearAxisCFO.