re: Help me understand depreciation on a rental property

You can take the value of the entire property (250k), subtract the land value (50k), giving the house a value of 200k. You can depreciate that 200k over the next 27.5 years (7,250 per year). The value of the land is calculated on your property tax bill.

Lets say you make 2k per month in rent (24k per year).

Deduct your expenses (lets say 2k), mortgage interest(lets say 12k), property tax (lets say 2k) and depreciation per year (7,250).

24k - 2k - 12k - 2k - 7.25k = 2,750 of rental income that will be added to your taxable income

This is my current understanding. I'm new to the game as well and still learning.