DEPRECIATION REFERENCE · MAINTAINED · OPEN ACCESS
The Depreciation Reference
Every operational rule, every worked example, every source document — indexed and cross-linked. Pick a rule to read the controlling statute and operational consequence; pick a worked example to see the arithmetic on a specific property.
01
Rules
7 operational rules — MACRS, bonus, §179, Form 3115, recapture, cost seg, §469
02
Worked Examples
The rules applied to specific property scenarios with year-1 deduction calculations
03
Scenarios
Decision scenarios — STR vs LTR, REPS vs passive, §179 vs bonus, 1031 vs sale
04
Recent Changes
Substantive page revisions with reviewer attribution and date
05
Source Documents
Statute, regulations, revenue procedures, IRS notices, judicial decisions
| STATUTE | TOPIC · OPERATIONAL CONSEQUENCE | PRIMARY SOURCES | PAGES | UPDATED |
|---|---|---|---|---|
| IRC §168 | MACRS schedules Class lives, recovery periods, and conventions for the Modified Accelerated Cost Recovery System. | 26 U.S.C. §168 Treas. Reg. §1.168-1 Pub. 946 | 2026-05-08 | |
| IRC §168(k) | Bonus depreciation First-year additional depreciation. OBBBA restored 100% for property placed in service after Jan 19, 2025. | 26 U.S.C. §168(k) TD 9993 Notice 2025-17 | 2026-05-08 | |
| Pub. 5653 | Cost segregation Engineering reclassification of building components into shorter recovery periods. Audit Techniques Guide. | Pub. 5653 (ATG) CCA 202612008 | 2026-04-22 | |
| Form 3115 | Change in accounting method Filing under Rev. Proc. 2015-13 to claim missed depreciation. §481(a) adjustment, automatic vs. non-automatic. | Rev. Proc. 2015-13 Treas. Reg. §1.446-1(e) Rev. Proc. 2026-08 | 2026-04-15 | |
| IRC §469 | Passive activity rules Limitations on losses from passive activities. Real estate professional exception, material participation tests. | 26 U.S.C. §469 Treas. Reg. §1.469-5T Pub. 925 | 2026-03-30 | |
| IRC §§1245·1250 | Recapture rules Ordinary-income recapture on disposition. The §1245 vs §1250 distinction and unrecaptured §1250 gain. | 26 U.S.C. §§1245, 1250 Treas. Reg. §1.1250-1 Pub. 544 | 2026-04-03 | |
| IRC §179 | Section 179 expensing Immediate expensing election. 2026 dollar limit $1.29M, investment cap $3.22M, taxable-income limited. | 26 U.S.C. §179 Treas. Reg. §1.179-1 Pub. 946 | 2026-03-18 |
| CASE | PROPERTY · PLACED IN SERVICE | SEARCH ENTRY POINTS | YR-1 DELTA |
|---|---|---|---|
| IDR-EX-001 | $1.2M duplex placed June 2023 | duplex cost seghouse hack depreciationMACRS 27.5-yr | +$468,840 |
| IDR-EX-002 | $900K STR purchased 2023 | STR loophole≤7-day averagematerial participation | +$382,500 |
| IDR-EX-003 | 12-unit MFR acquired 2025 | multifamily100% bonus restoredOBBBA §70302 | +$1,140,000 |
| IDR-EX-004 | Restaurant FF&E placed 2024 | §179 expensingrestaurant equipment5-yr personal property | +$96,400 |