MACRS 7-Year Property — Depreciation Schedule 2025 & 2026
7-year MACRS property covers office furniture, fixtures, most machinery, and assets not otherwise classified. Depreciated over 8 tax years under the half-year convention using IRS Publication 946 Table A-1.
Recovery period
7 years
half-year convention
Section 179 eligible?
Yes
Up to $2,560,000 in 2026
Bonus depreciation
100%
Post-OBBBA (on/after 2025-01-20)
What qualifies as 7-Year property?
- Office furniture and fixtures (desks, chairs, filing cabinets)
- Agricultural machinery and equipment (other than listed 5-year items)
- Manufacturing equipment and most industrial machinery
- Assets with no designated class life (default 7-year)
- Communication equipment (non-digital) and printing presses
- Breeding cattle and dairy cattle
Source: IRS Publication 946, Table A-1. If your asset is not explicitly classified, consult Rev. Proc. 87-56 asset-class tables or default to 7-year property.
MACRS depreciation schedule — $100,000 asset
Worked example: a $100,000 property placed in service with no Section 179 and no bonus depreciation, showing the raw 7-Year MACRS schedule.
| Tax year | Rate | Deduction | Accumulated | Book value |
|---|---|---|---|---|
| 1 | 14.29% | $14,290.00 | $14,290.00 | $85,710.00 |
| 2 | 24.49% | $24,490.00 | $38,780.00 | $61,220.00 |
| 3 | 17.49% | $17,490.00 | $56,270.00 | $43,730.00 |
| 4 | 12.49% | $12,490.00 | $68,760.00 | $31,240.00 |
| 5 | 8.93% | $8,930.00 | $77,690.00 | $22,310.00 |
| 6 | 8.92% | $8,920.00 | $86,610.00 | $13,390.00 |
| 7 | 8.93% | $8,930.00 | $95,540.00 | $4,460.00 |
| 8 | 4.46% | $4,460.00 | $100,000.00 | $0.00 |
Rates from IRS Publication 946 Table A-1. Computed at build time — no hardcoded schedules.
With §179 + 100% bonus depreciation
For a $100,000 asset placed in service in 2026, electing §179 expensing (up to $2,560,000) plus 100% bonus depreciation on the remaining basis.
§179 deduction
$100,000
Immediate expensing
Bonus depreciation
$0
On remaining basis after §179
First-year total
$100,000
100.00% of basis
With §179 capped at the full asset cost and 100% bonus on the rest, a 2026 purchase can be nearly fully expensed in year one — subject to business-income limitations for §179 and placed-in-service date for bonus depreciation.
Section 179 and bonus depreciation — 2025 vs 2026
| Parameter | 2025 (OBBBA) | 2026 (indexed) |
|---|---|---|
| §179 deduction limit | $2,500,000 | $2,560,000 |
| §179 phase-out threshold | $4,000,000 | $4,090,000 |
| Bonus depreciation (post-2025-01-20) | 100% | 100% |
| Bonus depreciation (pre-2025-01-20) | 40% (TCJA phase-down) | — |
| Applies to this asset class? | ✓ §179 + bonus | ✓ §179 + bonus |
Source: One Big Beautiful Bill Act (signed July 2025) and IRS Rev. Proc. 2025-32 (2026 inflation adjustments). Pre-OBBBA property uses TCJA phase-down: 80% (2023), 60% (2024), 40% (2025 pre-1/20).
Common mistakes and gotchas
- The "default 7-year" classification traps many assets — if you cannot find your asset in Pub 946 class tables, it falls to 7-year, not a guess.
- Specialized machinery used in specific industries (e.g., oil/gas, rail) may have a shorter class life. Check Rev. Proc. 87-56 asset-class tables before defaulting to 7 years.
- If the mid-quarter convention kicks in (>40% of basis placed Q4), the first-year 14.29% drops significantly — plan Q1-Q3 placements to preserve the half-year convention.
Frequently asked questions
What qualifies as 7-year MACRS property?
Office furniture, fixtures, most general-purpose machinery, and assets without a specific MACRS classification default to 7-year property. Examples include desks, file cabinets, breeding livestock, and manufacturing equipment not specifically assigned elsewhere.
What is the 7-year MACRS depreciation schedule?
Under the half-year convention: 14.29% year 1, 24.49% year 2, 17.49% year 3, 12.49% year 4, 8.93% year 5, 8.92% year 6, 8.93% year 7, 4.46% year 8. Eight tax years total.
Can office furniture qualify for Section 179 + bonus?
Yes. 7-year property like office furniture is §179-eligible (up to $2,500,000 in 2025) and bonus-eligible. Post-OBBBA (property placed in service 2025-01-20 or later), bonus depreciation is 100%.
Is 7-year MACRS always half-year convention?
Not always. Mid-quarter convention applies if more than 40% of the year's depreciable basis is placed in the last 3 months. This recalculates each asset's first-year rate based on which quarter it was placed in service.
Other MACRS asset classes
MACRS 5-Year Property
5-year recovery · half-year convention · Table A-1
MACRS 15-Year Property
15-year recovery · half-year convention · Table A-1
MACRS 27.5-Year Residential Rental Property
27.5-year recovery · mid-month convention · Table A-6
MACRS 39-Year Nonresidential Real Property
39-year recovery · mid-month convention · Table A-7a
Sources
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