Bonus Depreciation Calculator
Calculate your first-year tax write-off under the Tax Cuts and Jobs Act (TCJA) bonus depreciation phase-out schedule.
Bonus Depreciation Calculator (TCJA Phase-Out Schedule)
Model Tax Cuts and Jobs Act (TCJA) bonus depreciation phase-down (80%, 60%, 40%, 20%) and MACRS Year 1 tax savings.
Immediate tax reduction based on 40% TCJA bonus rate.
Understanding the TCJA Bonus Depreciation Sunset
The 2017 Tax Cuts and Jobs Act allowed 100% bonus depreciation for qualifying business assets. However, starting in 2023, this incentive began phasing out by 20 percentage points each year until it reaches zero in 2027.
Key Features
Statutory TCJA Phase-Out Engine
Accurately applies 60% (2024), 40% (2025), and 20% (2026) statutory bonus depreciation percentages.
MACRS Half-Year Convention Blending
Depreciates remaining basis across 5-year, 7-year, or 15-year recovery classes.
Common Use Cases
- ✓Commercial Real Estate Owners
Deduct 15-year Qualified Improvement Property (QIP) interior tenant build-outs.
- ✓Corporate Tax Directors & CPAs
Structure capital asset timing across calendar quarters before bonus rates step down further.
Frequently Asked Questions
What is the bonus depreciation rate for 2025?
Under the Tax Cuts and Jobs Act (TCJA), bonus depreciation drops to 40% for qualifying property placed in service during calendar year 2025, down from 60% in 2024.
What property qualifies for bonus depreciation?
Qualifying property includes MACRS property with a recovery period of 20 years or less (machinery, equipment, furniture, computers), computer software, and Qualified Improvement Property (QIP).
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