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Rental Property Depreciation in Wisconsin

K-04

Run the Rental Property Depreciation on Wisconsin numbers: median home value $337,000, 1.25% property tax, and a worked Wisconsin example with every formula shown.

Reviewed October 2026 · WI defaults preloaded · Free, no sign-up · Formulas shown

Property inputs

Basis

Land never depreciates. County assessments and appraisals usually split it out.

Closing costs, attorney fees, and immediate improvements added to the basis.

Service and tax assumptions

The month the property is ready to rent, not the closing date if you renovated first.

Combined federal and state rate. Passive activity rules may suspend rental losses.

This building lets you deduct $10,233N2 a year for 27.5 years, worth $2,456N4 a year in tax at a 24% rate.

Plan K-04Placed in service in January: $9,806 in the first tax year. $60,300 of land never depreciates. Estimates, not tax advice.

This building lets you deduct $10,233 a year for 27.5 years, worth $2,456 a year in tax at a 24% rate.

Depreciable basisN1
$281,400
building plus capitalized costs
Per monthN2
$853
straight line
First tax yearN3
$9,806
in service from January
Tax saved, all yearsN4
$67.5K
at 24%

Recovering the basis over 27.5 years

IRS Table A-1, mid-month convention

Full depreciation schedule

Every tax year, computed live

Tax yearRateDeductionRecoveredTax saved
13.485%$9,806$9,806$2,354
23.636%$10,233$20,039$2,456
33.636%$10,233$30,272$2,456
43.636%$10,233$40,505$2,456
53.636%$10,233$50,737$2,456
63.636%$10,233$60,970$2,456
73.636%$10,233$71,203$2,456
83.636%$10,233$81,435$2,456
93.636%$10,233$91,668$2,456
103.636%$10,233$101,901$2,456
113.636%$10,233$112,134$2,456
123.636%$10,233$122,366$2,456
133.636%$10,233$132,599$2,456
143.636%$10,233$142,832$2,456
153.636%$10,233$153,065$2,456
163.636%$10,233$163,297$2,456
173.636%$10,233$173,530$2,456
183.636%$10,233$183,763$2,456
193.636%$10,233$193,995$2,456
203.636%$10,233$204,228$2,456
213.636%$10,233$214,461$2,456
223.636%$10,233$224,694$2,456
233.636%$10,233$234,926$2,456
243.636%$10,233$245,159$2,456
253.636%$10,233$255,392$2,456
263.636%$10,233$265,625$2,456
273.636%$10,233$275,857$2,456
281.970%$5,543$281,400$1,330

Educational estimate, not tax advice. Depreciation is recaptured (generally at up to 25%) when you sell, and passive activity rules may suspend losses. Confirm your basis and schedule with a CPA using IRS Publication 946.

Depreciation is the largest paper expense a rental owner gets to claim, and it is the same everywhere — 27.5 years, straight line, mid-month convention, federal law. What differs by state is how much the deduction is worth, because Wisconsin taxes wage income, so the deduction offsets state tax as well as federal. On a typical Wisconsin rental purchased near $335,000, the schedule below writes off $281,400 of building value and returns roughly $2,456 per year in tax savings at the assumed rate.

Wisconsin depreciation snapshot

Purchase priceStatewide typical home value (Zillow)$335,000
Land shareTypical for the midwest — land is never depreciable18%
Depreciable basisPrice − land + capitalized closing costs$281,400
Annual depreciation1 ÷ 27.5 of the basis, straight line$10,233
First-year depreciationMid-month convention on a January start$9,806
Assumed combined tax rateWisconsin state income tax included in the combined rate24%

Home values: Zillow, September 2026. Income, rent, and property tax: U.S. Census Bureau ACS, 2024. Insurance is an estimate. Sources · How every state compares

The Wisconsin depreciation schedule

Depreciable basis$281,400
Recovery period27.5 years (MACRS GDS)
Full-year depreciationHeadline result$10,233
Monthly deduction$853
First-year (mid-month) deduction$9,806
Annual tax savings at the assumed rateHeadline result$2,456
Total deducted over the recovery period$281,400
Claiming $10,233 of deduction each year reduces taxable rental income by that amount — worth $2,456 annually at a 24% combined rate. Over the full 27.5-year schedule the same $281,400 of basis is recovered, and the deduction is recaptured at sale — depreciation is a deferral, not a gift.

Wisconsin-specific considerations

State income tax and the depreciation deduction

Wisconsin taxes wage income, so the deduction offsets state tax as well as federal. Set the combined rate slider to your actual federal + Wisconsin marginal rate; at 24% federal plus state, each dollar of depreciation can shelter a quarter or more of income.

Basis adjustments in Wisconsin

Residential and commercial property share one valuation methodology but pay different effective rates; the lottery credit and circuit breaker lower owner-occupied bills. Those property taxes are deductible as operating expenses, not capitalized — but closing costs, attorney fees, and immediate improvements made in the first year do join the depreciable basis, which is why the example adds $6,700 of capitalized costs. State transfer taxes paid at closing also capitalise into basis.

Selling a Wisconsin rental

Depreciation taken — or "allowed or allowable," which includes depreciation you never claimed — is recaptured at up to 25% federal rate on sale. Wisconsin's treatment of that recapture varies; a 1031 exchange into another investment property defers both the capital gain and the recapture, which is why it is the standard exit for long-holding Wisconsin rental owners.

How to calculate your Wisconsin rental depreciation

  1. Confirm the property is placed in service (available for rent) — that starts the clock, and the mid-month convention means the first and last years claim partial months.
  2. Split the purchase price between land and building. The default uses 18% land for the Wisconsin market; an appraisal or county split is more accurate.
  3. Add closing costs and any immediate improvements to the basis — capitalized costs raise every future deduction.
  4. Set the month placed in service; the schedule re-dates the mid-month convention automatically.
  5. Set the combined federal + Wisconsin state marginal rate to estimate tax savings. Use your actual marginal rate, not the top bracket.

Methodology

Residential rental property recovers its depreciable basis over 27.5 years under MACRS GDS (IRS Publication 946, Table A-1): straight-line at 1/27.5 of the basis per full year, with a mid-month convention in the year placed in service — the first year claims half a month for the month of service, and the final stub year closes the schedule to exactly 100%.

Land is removed from basis before the schedule starts, because land does not wear out. The Wisconsin defaults use the statewide typical home value and a region-typical land share; substitute your appraisal and actual closing costs for a precise schedule.

Sources

Read the full methodology, worked example, and caveats in the national Rental Property Depreciation guide.

Wisconsin FAQ

Does Wisconsin allow rental property depreciation?
Yes — and so does every other state. Depreciation is a federal tax rule (MACRS, 27.5 years for residential rentals) that every landlord may claim regardless of where the property sits. What varies is the value: wisconsin taxes wage income, so the deduction offsets state tax as well as federal.
How much rental property depreciation can I claim on a Wisconsin home?
On the example above, $10,233 per year — the $281,400 depreciable basis ÷ 27.5 — worth about $2,456 in tax savings at a 24% combined rate. The first year claims $9,806 because the mid-month convention counts only part of the month placed in service.
Is the depreciation deduction worth more in Wisconsin than in a no-income-tax state?
Somewhat, yes. Because Wisconsin taxes wage income, each dollar of depreciation shelters federal plus state tax — set the combined rate slider to your actual marginal rate. A landlord in a no-income-tax state at the same federal bracket shelters less per dollar.
What happens to depreciation when I sell my Wisconsin rental?
It is recaptured: the IRS taxes depreciation taken (or allowable) at up to 25% federal rate when you sell at a gain. A 1031 exchange into another investment property defers both the gain and the recapture, which is the standard exit for long-term Wisconsin rental owners. State treatment of the recapture varies — confirm with a Wisconsin tax professional before filing.

Other state editions

Every state gets its own edition of the Rental Property Depreciation, preloaded with that market's typical values, tax rates, and insurance costs:

AlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWyoming

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