Back to Hub

Real Estate Double-Declining Tax Shield.

Simulate the net present value (NPV) advantage of accelerated double-declining balance (DDB) depreciation strategies vs straight-line depreciation for high-value real estate assets.

## Advantaged Real Estate Depreciation

For commercial real estate and large asset acquisitions, straight-line depreciation spreads the tax shield evenly over the asset's useful life. However, time-value of money (TVM) dictates that a dollar saved today is worth more than a dollar saved in 15 years.

Accelerated depreciation methods, such as Double-Declining Balance (DDB) or Cost Segregation strategies, front-load these write-offs. This calculator proves the actual Net Present Value (NPV) of front-loading your tax shield.

### FAQ

**Q: What is a tax shield?**
A: A tax shield is the reduction in income taxes that results from taking an allowable deduction from taxable income. For example, because depreciation is a non-cash expense, it reduces your taxable net income, saving you cash equivalent to `Depreciation * Marginal Tax Rate`.