Real Estate Investor Tax Tools
Depreciation is the reason rental real estate is so tax-efficient. These free calculators estimate how much you can deduct, accelerate, and defer, from cost segregation to 1031 exchanges.
Free tax calculators
Cost Segregation Calculator
Estimate the first-year depreciation a study could accelerate, and whether the study pays for itself.
Bonus Depreciation Calculator
How much of your short-life property you can deduct in year one, with 100% bonus restored for 2025.
Depreciation Calculator
Annual depreciation, the tax it shields each year, and the recapture you owe when you sell.
1031 Exchange Calculator
The capital gains and recapture tax you can defer, your carryover basis, and the 45 and 180-day clocks.
How investors lower their tax bill
Depreciation: the base deduction
The IRS lets you deduct the building portion of a rental property over 27.5 years for residential and 39 years for commercial, even as the property appreciates. On a 400,000 dollar residential property with 20 percent land, that is roughly 11,600 dollars a year that shelters your rental income. The depreciation calculator shows the annual deduction and the recapture you owe at sale.
Cost segregation: pull deductions forward
A cost segregation study reclassifies parts of the building, such as fixtures, flooring, and land improvements, into 5 and 15-year property. A study commonly moves 20 to 40 percent of the building basis into these short lives, which front-loads the deductions. The cost segregation calculator estimates the first-year benefit and whether the study pays for itself.
Bonus depreciation: deduct it now
Bonus depreciation lets you deduct qualifying short-life property in the year it is placed in service instead of over its recovery period. The 2025 tax law permanently restored 100 percent bonus depreciation for property placed in service on or after early 2025, after it had phased down to 60 percent in 2024. The bonus depreciation calculator applies the correct percentage by year.
1031 exchange: defer the tax at sale
When you sell, the depreciation you took is recaptured at up to 25 percent and your appreciation is taxed as a capital gain. A 1031 exchange lets you roll the proceeds into a like-kind property and defer both, as long as you use a qualified intermediary and meet the 45 and 180-day deadlines. The 1031 exchange calculator estimates the tax you can defer and your new basis.
Informational and educational only, not tax advice, and no accountant-client relationship is created. Estimates use simplified assumptions and do not reflect your specific situation. Verify current tax law and consult your CPA before filing.
Frequently asked questions
How do real estate investors reduce their taxes?
The largest lever is depreciation: you deduct the building portion of your basis every year, which shelters rental income. A cost segregation study accelerates that depreciation into the early years, bonus depreciation lets you deduct qualifying short-life property immediately, and a 1031 exchange defers the tax when you sell and reinvest. These tools estimate each of those.
What is the difference between depreciation, cost segregation, and bonus depreciation?
Depreciation spreads the building basis over 27.5 or 39 years. Cost segregation is a study that reclassifies parts of the building into 5 and 15-year lives so they depreciate faster. Bonus depreciation then lets you deduct that reclassified short-life property, up to 100 percent, in the first year rather than over its life.
Do these tax tools cost anything?
No. All of the calculators here are free to use with no sign-up required.
Are these tools a substitute for a CPA?
No. They are educational estimates that use simplified assumptions. Real estate tax planning has many moving parts, so confirm any numbers with a qualified CPA before acting on them.