Bonus Depreciation Calculator

Calculate first-year bonus depreciation deductions under the TCJA phase-down schedule, combined with MACRS recovery for eligible asset purchases.

Tax Disclaimer

This calculator provides estimates based on general tax rules and may not reflect your specific situation. Tax laws vary by jurisdiction and change frequently. Consult a qualified tax professional or CPA for advice tailored to your circumstances.

Inputs

Asset Cost ($)

Tax Year Placed in Service

MACRS Recovery Period

Marginal Tax Rate (%)

New or Used Asset

Tab to move between fields

Results

Total First-Year Deduction

$68,000

First-Year Tax Savings

$16,320

Bonus Depreciation$60,000

MACRS First-Year Depreciation$8,000

Savings vs. No Bonus$11,520

Remaining Depreciable Basis$40,000

First-Year Deduction %68%

How to Use This Calculator

Enter Asset Cost for the qualifying business asset placed in service.
Select Tax Year — bonus depreciation is 60% in 2024, phasing down 20%/year through 2026.
Select MACRS Recovery Period (3, 5, 7, 10, 15, or 20 years) for the asset type.
Enter your Marginal Tax Rate % for tax savings calculation.
Review Year 1 Deduction (bonus + MACRS) vs. Year 1 Deduction Without Bonus to quantify the acceleration.
Bonus depreciation applies automatically unless you elect out — elect out in years with low income to preserve deductions.

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