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Zovo Depreciation Schedule

Calculate depreciation for one asset

calculate_depreciation
Read-onlyIdempotent

Use this when the user wants a depreciation calculator result for one asset: a straight-line depreciation schedule, double declining balance or 150% declining balance, sum-of-the-years' digits, units of production, or a MACRS depreciation calculator result for a computer, vehicle, equipment, rental property (27.5-year) or commercial building (39-year). Only cost is required; method, life or property class, salvage value and date placed in service are optional with stated defaults. Returns the year-by-year schedule (depreciation, accumulated depreciation, book value) to the cent, and PDF, Excel and CSV downloads. Does not model Section 179, bonus depreciation, ADS or dispositions, and is not tax advice. Do not use for several assets (use generate_depreciation_schedule).

Input Schema

NameRequiredDescriptionDefault
costNoRequired. Cost basis of the asset (purchase price plus sales tax, shipping and installation), e.g. 25000 or "$25,000". For a building, leave out the land value.
nameNoAsset name or description, e.g. "Dell laptop" or "Rental house at 12 Oak St". Also used to pick a MACRS class or a default life when none is given.
methodNoDepreciation method: straight_line (default), double_declining (200% declining balance), 150db, declining_balance, sum_of_years, units_of_production, or macrs (US tax, IRS Pub 946 tables). Synonyms like "DDB", "SYD", "tax" work.
conventionNoFirst-year convention. MACRS: half_year (default) or mid_quarter; real property always uses mid_month. Book methods: full_month (default, the month placed in service counts), mid_month, half_year or full_year.
land_valueNoLand value included in cost, e.g. 70000 for a house bought with its lot. It is taken out of the basis because land is not depreciable.
units_totalNoUnits of production only: estimated total lifetime units, e.g. 100000 (miles, hours or pieces).
salvage_valueNoSalvage (residual) value at the end of the life, e.g. 2000 or "10%". Default 0. Ignored by MACRS.
declining_rateNoDeclining balance rate in percent: 200 (default, double declining), 150 or 125.
property_classNoMACRS GDS recovery period: 3, 5, 7, 10, 15, 20, 27.5 (residential rental) or 39 (nonresidential real property), or words like "residential rental", "computer", "office furniture".
units_per_yearNoUnits of production only: units used each year starting with the year placed in service, e.g. [20000, 25000, 18000] or "20000, 25000, 18000".
placed_in_serviceNoDate placed in service, e.g. 2026-03-15, "March 2026" or 03/15/2026 (US order). Only the month and year matter. Default January of this year.
useful_life_yearsNoUseful life in years for book methods, e.g. 5 or "7 years" or "60 months". Default from the property class or the description, else 5.
business_use_percentNoBusiness-use percent of the asset, e.g. 80 for 80%. Default 100. Basis and salvage are scaled by it.
switch_to_straight_lineNoDeclining balance only: switch to straight-line when it gives more depreciation. Default true.

Output Schema

NameRequiredDescriptionDefault
assetYes
summaryYes
currencyYes
scheduleYes
tax_noteYes
warningsYes
downloadsYes
first_yearYes
assumptionsYes
years_countYes
ending_book_valueYes
total_depreciationYes

Schema Changelog

Changes observed during successful MCP inspections.

  1. First observed

TDQS

A4.5/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already establish readOnly, idempotent, non-destructive and closed-world behavior, so the safety profile is covered. The description adds non-obvious scope boundaries the annotations cannot convey: no Section 179, no bonus depreciation, no ADS, no dispositions, and not tax advice, plus the fact that results are produced to the cent with PDF/Excel/CSV downloads. It does not discuss pagination or failure modes, but for a pure computation tool that is a minor omission.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

It is a single dense paragraph, but the order is well front-loaded: purpose, then optionality, then return values, then exclusions, then the sibling alternative. The long method enumeration is slightly list-like but each item is a genuinely distinct supported mode, so little could be cut without losing selection signal.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness4/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a 14-parameter tool with full schema coverage, existing annotations and an output schema, the description supplies what the structured fields cannot: scope, unsupported tax features, required-input minimum, and the sibling boundary. The only residual gap is that it does not flag the conditional requirement of units_total/units_per_year for units-of-production, though the schema descriptions do.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters4/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so the baseline would be 3 regardless. The description still adds real meaning by sorting the 14 parameters into a required minimum (cost) versus optional ones with stated defaults (method, life or property class, salvage value, date placed in service), which tells the agent it can call the tool with almost no input. It does not re-explain individual parameter formats, which is appropriate since the schema does that well.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description names a specific verb and resource ('depreciation calculator result for one asset') and enumerates the supported methods (straight-line, 200%/150% declining balance, SYD, units of production, MACRS) plus the property classes covered. It explicitly differentiates from the sibling by restricting scope to a single asset and naming generate_depreciation_schedule for multi-asset cases.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

It opens with an explicit when-to-use cue ('Use this when the user wants a depreciation calculator result for one asset') and closes with a when-not-to-use rule plus the alternative tool to use instead. The prerequisites ('Only cost is required') tell the agent the minimum viable invocation, which is strong routing guidance for a 14-parameter tool.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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