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Accelerated Depreciation

Bonus Depreciation Calculator

Calculate first-year tax deductions using bonus depreciation. Deduct a large percentage of your asset purchase in year one instead of spreading it over many years.

Calculate Your Deduction

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Bonus depreciation is phasing down

Enter your asset details to calculate depreciation benefits

How Bonus Depreciation Works

Accelerate your tax deductions by taking a larger write-off in the first year

1

What Qualifies

Most tangible property with a recovery period of 20 years or less qualifies. This includes machinery, equipment, computers, furniture, and vehicles.

2

Phase-Down Schedule

Bonus depreciation is phasing down by 20% each year: 80% (2024), 60% (2025), 40% (2026), 20% (2027), 0% (2028+).

3

Time to Buy

Asset must be purchased and placed in service during the tax year. The sooner you buy, the higher the bonus percentage!

Important Considerations

  • New or Used: Both new and used property qualify (since 2017 Tax Cuts and Jobs Act)
  • No dollar limit: Unlike Section 179, bonus depreciation has no cap
  • Act fast: Bonus percentage decreases each year until 2028
  • Combine strategies: Can use with Section 179 for maximum benefit

Qualifying Assets

Common business assets eligible for bonus depreciation

Machinery & Equipment

Manufacturing equipment, forklifts, tools

Office Furniture & Fixtures

Desks, chairs, cubicles, shelving

Computers & Software

Computers, servers, off-the-shelf software

Vehicles

Cars, trucks, vans used for business

Appliances & Equipment

Restaurant equipment, medical devices

Landscaping & Fencing

Decorative landscaping, fencing around property

Time-Sensitive Tax Strategy

Bonus depreciation is decreasing each year. Schedule a consultation to plan your asset purchases strategically and maximize your deductions.