Bonus Depreciation Calculator
Calculate first-year bonus depreciation with the OBBBA date boundary, then see the full MACRS schedule on the remaining basis.
Built on IRS Pub. 946, Form 4562 instructions, and Notice 2026-11.
Bonus depreciation
2026$0
Enter your asset details to begin.
Rate explanation appears here.
Advanced adjustments Section 179, election choices, and MACRS overrides
Enter the amount already allowed for this asset after all Section 179 limits.
The reduced election is only for post-boundary 2025 transition-year property.
ADS property is not bonus-eligible.
Aggregate basis reductions from credits or special deductions.
Bonus eligibility generally requires 20 years or less.
200DB and 150DB front-load depreciation; SL spreads it evenly.
10+ year recovery, §263A, production > 1 year, cost > $1M, or aircraft tests.
Interior improvements to nonresidential real property, excluding enlargement, elevators, escalators, and internal structural framework.
Half-year is the default; mid-quarter applies when >40% of assets start in Q4.
Not from a related party, not previously used by me, no carryover/inherited basis.
Saved in your share URL and shown in assumptions.
MACRS schedule on remaining basis
| Year | Rate | Depreciation | Cumulative | Remaining |
|---|
Year-one flow and boundary timing
OBBBA boundary timeline
This is an estimate, not tax advice. It computes federal bonus depreciation for planning. Your filed return can differ because of passive-loss rules, vehicle caps, state adjustments, and recapture rules. Confirm anything material with a CPA or enrolled agent.
The basics
What bonus depreciation is
Bonus depreciation is an additional first-year deduction under Section 168(k). If you also use Section 179, bonus applies after that amount. Any basis left over then follows regular MACRS depreciation.
Bonus depreciation
An additional first-year deduction under Section 168(k), taken after Section 179 and before regular MACRS.
Section 168(k)
The code section that governs bonus depreciation rates, elections, and date windows.
OBBBA boundary
The 100% rate requires both acquisition and placed-in-service dates after January 19, 2025.
TCJA phase-down
For pre-January-20-2025 acquisitions: 80% in 2023, 60% in 2024, 40% in 2025, and 20% in 2026.
Placed in service
The date the asset is ready and available for business use.
Section 179 ordering
Allowed Section 179 reduces basis before bonus runs.
Section 280F
Passenger-vehicle caps can lower first-year deductions below uncapped bonus calculations.
MACRS remainder
Any basis left after bonus is depreciated under regular MACRS over future years.
The boundary
The OBBBA date boundary decides your rate
The most important rule is simple but easy to miss: the 100% OBBBA rate requires both dates after January 19, 2025. If acquisition is before January 20, 2025, the older phase-down still applies, including the corrected 20% branch in 2026.
Rate branch = compare acquisition date and placed-in-service date to Jan 19, 2025 (no blended rate)
Business-use basis
Cost is reduced to the business-use portion first.
Other basis reductions
Credits and special basis adjustments reduce depreciation basis before Section 179.
Section 179 allowed
Bonus runs on the basis left after allowed Section 179.
Date-aware bonus rate
The decision tree applies the correct branch: post-OBBBA 100%, or pre-OBBBA phase-down rates.
Regular MACRS
The schedule then runs on the remaining basis so you can see the timing difference.
Worked examples
How the branch logic changes year one
$100,000 basis, acquired 2025-01-20, placed in service 2025-02-10, no Section 179.
- Rate100%
- Bonus$100,000
- Remaining MACRS basis$0
$100,000 basis, acquired 2024-12-15, placed in service 2025-02-01.
- Rate40%
- Bonus$40,000
- Remaining MACRS basis$60,000
$100,000 basis, acquired 2024-12-15, placed in service 2026-03-01.
- Rate20%
- Bonus$20,000
- Remaining MACRS basis$80,000
$100,000 basis, $25,000 allowed Section 179, post-boundary 100% bonus.
- Basis after Section 179$75,000
- Bonus$75,000
- Section 179 + bonus$100,000
The form
How the result flows to your tax return
Your bonus result maps to Form 4562 and then flows into your business return. The exact line depends on whether the property is listed property.
Straightforward non-listed property
Part II line 14$100,000 asset, post-boundary 100% bonus, no Section 179.
| Line | Description | Amount |
|---|---|---|
| Form 4562 Part II, line 14 | Bonus depreciation | $100,000 |
| Form 4562 Part III | Regular MACRS on remaining basis | $0 |
| Form 4562 Part IV, line 22 | Total depreciation | $100,000 |
→ Schedule C line 13
Listed property example
Part V line 25Light vehicle with uncapped bonus shown as advisory only.
| Line | Description | Amount |
|---|---|---|
| Form 4562 Part V, line 25 | Listed-property bonus | Uncapped estimate shown |
| Section 280F cap | First-year cap still applies | $20,300 with bonus (2026) |
→ Business return depreciation line
Watch out
Common mistakes
- Using only one date The OBBBA 100% rule needs both acquisition and placed-in-service dates after January 19, 2025.
- Treating bonus as extra lifetime savings Bonus usually changes timing, not total depreciation over the asset life.
- Skipping the Section 179 step Bonus runs on basis after allowed Section 179, not on original cost.
- Ignoring vehicle caps Light vehicles can hit Section 280F first-year caps even when bonus is available.
- Assuming federal equals state Many states decouple from federal bonus depreciation and require separate schedules.
Behind the answer
How I tested the bonus depreciation calculator
I checked every rate branch, ordering rule, and boundary date with source-backed cases before publishing this page.
Branch coverage
I tested post-boundary 100%, pre-boundary 40% and 20%, special 60% and 30%, election out, and outside-window 0% paths.
Ordering checks
I verified that Section 179 reduces basis before bonus, then MACRS runs on the remaining basis only.
Validation checks
I tested date ordering, year mismatches, unsupported properties, and confirmation flags for used and special property paths.
Year-specific tripwires
I added permanent checks so a 2026 pre-boundary asset cannot accidentally regress to 100% in future updates.
You can download all 34 test cases as JSON and verify the math against the cited IRS sources yourself. If you spot a mistake, tell me and I'll fix it.
FAQ
Questions people ask
How do I calculate bonus depreciation?
Multiply qualified basis by the applicable bonus rate after Section 179 is applied. The key is choosing the correct date branch first.
Is bonus depreciation always 100% in 2026?
It is 100% for post-boundary property, but pre-January-20-2025 acquisitions placed in service in 2026 use 20% (or 30% for qualifying special property).
What does this calculator do with Section 179?
You enter the allowed Section 179 amount, and the calculator subtracts it before applying bonus depreciation.
Can bonus depreciation offset W-2 income or capital gains directly?
This calculator only computes the depreciation deduction. Whether that deduction offsets other income depends on passive-loss and participation rules.
Why does the page show a MACRS schedule after bonus?
It shows the remaining basis timing so you can see how much depreciation is left after year one.
How are light vehicles handled?
The tool shows uncapped bonus and a Section 280F cap advisory. It does not compute the full vehicle-cap interaction.
Does this include state depreciation rules?
No. It is federal-only and warns when state conformity can differ.
Where does this go on my return?
Bonus is reported on Form 4562 Part II line 14 for non-listed property, or Part V line 25 for listed property, then flows to your business return line.
What this calculator doesn't model (and why)
Vehicle cap mechanics
Light-vehicle Section 280F limits are shown as advisory notes. Full capped-first-year computation is out of scope for this tool.
Passive-loss usability
The page computes depreciation, not whether you can use the resulting loss this year under passive-loss and participation rules.
State conformity
Federal-only result. Many states require separate depreciation addback and recovery tracking.
Specialized property classes
Water utility, media production, and other specialized categories are not modeled as filing-ready calculations here.
Recapture and disposal years
The calculator does not estimate depreciation recapture on sale or on later drops below required business-use thresholds.
Fiscal-year transition elections
The temporary reduced-rate election is modeled only for a calendar-year 2025 transition assumption.
Updates
What's changed
- Initial build with the OBBBA date boundary, the corrected 2026 pre-OBBBA 20% branch, and year-specific checks against the latest IRS guidance.
Sources
Where the numbers come from
- IRS Publication 946: How to Depreciate Property
- IRS Form 4562 Instructions (2025): Part II line 14 ordering and election-out rules
- IRS Topic 704: Depreciation
- IRS IR-2026-06 / Notice 2026-11: OBBBA bonus depreciation guidance
- Rev. Proc. 2026-15 (2026-13 I.R.B.): continuing pre-OBBBA phase-down and auto limits
- Rev. Proc. 2025-32 (2025-45 I.R.B. 695): 2026 inflation-adjusted tax figures
- Public Law 119-21 (OBBBA), signed July 4, 2025