Renovation depreciation calculator
Your remodel doesn't have to wait 27.5 years
Kitchens, flooring, decks and landscaping are full of short-life property. Enter the renovation cost alone, or with the purchase, to see what you can deduct this year.
Estimated tax savings on your 2026 return
Example property$36k – $50k
From $111k–$156k of extra depreciation, compared with $8,273 without a study.
| Depreciation | 2026 deduction | 5 years |
|---|---|---|
| No study | $8,273 | $69,364 |
| With a study, low | $119,439 | $164,035 |
| With a study, high | $164,729 | $202,605 |
Where your $420,000 of basis goes with a study
- 5-year items
- $96,600
- 15-year site work
- $63,000
- 27.5-year building
- $260,400
Express Study from $895
About 48× its cost in year one
- Uses 100% bonus depreciation, available for homes bought and placed in service after Jan 19, 2025.
- Long-term rental losses are passive. They offset W-2 income only with real estate professional status or the $25k allowance (phases out above $100k income). Unused losses carry forward.
Getting an accurate number
- 1
Total the capital work
Labor, materials, permits and design for improvements. Leave out repairs like patching drywall or fixing a leak.
- 2
Purchase and renovation together, or alone
Bought and renovated recently? Enter both. Renovating a rental you already own? Set purchase and land to 0.
- 3
Use the completion date
Renovations are placed in service when the work is finished and the space is usable.
- 4
Note what you replaced
Old cabinets, a roof or HVAC you removed may have basis left. A partial disposition election can write it off. Mention it in your proposal request.
Why renovations reclassify well
Renovation budgets go mostly to finishes: flooring, cabinets, fixtures, appliances, lighting, exterior hardscape. Those are the 5- and 15-year categories. A study often puts 30–50% of a kitchen-and-bath remodel on short lives.
Without a study, the whole renovation is usually added to the building and depreciated over 27.5 years, so a $60,000 remodel deducts about $2,200 a year.
Reading the three rows
No study is the default schedule.Low and high bracket the share of basis studies usually move for that property type. Furnished homes, newer finishes and more site work land closer to high.
Questions
Do renovations count?
Yes. Capital improvements (remodels, new flooring, appliances, decks, fencing, landscaping) add to your basis and often contain a high share of 5- and 15-year property. Routine repairs don't belong in a study; they're deducted as repairs.
If you replaced something that was already being depreciated, like a roof or cabinets, the remaining basis of the old item can often be written off through a partial disposition election. Don't include costs you already expensed, or they'll be counted twice.
What if I don't have every invoice?
Estimate from what you have: contractor summaries, bank and card statements, scopes of work, before-and-after photos. For the study itself, we give you a spreadsheet template to organize costs by area. Keep receipts on file in case the IRS asks.
Do labor and permits count?
Yes. For capital improvements, include contractor labor, materials, permits, design and other costs needed to complete the work. Your own time does not count.
I renovated a rental I already owned. Does the calculator handle that?
Yes. Set the purchase price and land value to 0, enter the renovation cost, and use the date the work was finished as the in-service date. Improvements made after January 19, 2025 qualify for 100% bonus on their short-life portion, whenever you bought the house.
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Find out what your rental is worth on this year’s return
A free proposal with your estimated savings and a fixed fee, usually within one business day. Studies start at $895.