US Tax Tools

Bonus Depreciation Calculator

Estimate the special depreciation allowance after reducing basis for nonbusiness use and any Section 179 deduction taken first.

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Bonus Depreciation Inputs
02RESULTS
Estimated bonus depreciation is $100,000 at a 100.0% special allowance rate.

Bonus depreciation

$100,000

Basis after Section 179

$100,000

Remaining MACRS basis

$0

The 100% special allowance depends on when the property was acquired, not when it was placed in service: OBBBA restored 100% for qualified property acquired after 19 January 2025. Property acquired before 20 January 2025 stays on the pre-OBBBA §168(k)(6)(A) phase-down for whatever year it is placed in service — 40.0% for 2025, 20.0% for 2026, and none from 2027. Property with a long production period and certain aircraft run one year behind that ladder under §168(k)(6)(B) and are not modeled here.

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What this tool covers

Calculation scope

  • Uses the placed-in-service date for the 2025 statutory cutoff.
  • Reduces business basis by Section 179 before applying bonus.
  • Shows the remaining basis available for regular MACRS.

Frequently asked questions

Does used property qualify for bonus depreciation?

Qualified used property can qualify when the acquisition meets the related-party and prior-use restrictions in section 168(k). Eligibility depends on the asset and transaction facts.

Is bonus depreciation automatic?

The special allowance generally applies to qualified property unless the taxpayer makes a timely election out for a class of property.

Does every state follow federal bonus depreciation?

No. State conformity varies. This calculator is federal only and does not estimate state additions or different state recovery schedules.

Sources

Related Calculators

Last updated August 11, 2026 Tax year 2025 and 2026 bonus depreciation planning

Data sources: IRS Form 4562 instructions; IRS Publication 946; P.L. 119-21 §70301

This tool is general information only, not financial advice.

Federal planning estimate based on current IRS forms and instructions. Use the filed form and its instructions for return preparation.

Reviewed by USTax Tools Editorial Desk

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