Real estate rentals · 15 min
Taxes on a rental
A rental's tax return rarely matches its bank account. It can show a loss while cash comes in, or a bigger loss than you really paid. That's depreciation, and it comes back when you sell.
Ticket 01 · The guess
How long does the IRS spread a house?
Words to know
Sources and every number (2)
Sources
- Publication 527 (2025), Residential Rental Property (including the rental of vacation homes) · Internal Revenue Service, 2025
- Publication 946 (2025), How To Depreciate Property (recovery periods; residential rental property and dwelling units) · Internal Revenue Service, 2025
Every number
- 27.5 years
irs.gov ·2025 · The IRS's recovery period for residential rental property (straight line), Publication 527, 2025. - 39 years
irs.gov ·2025 · The IRS's recovery period for nonresidential real property, such as a store or office building, Publication 946, 2025.