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Bonus Depreciation Calculator

Estimate first-year bonus depreciation and the related tax savings for qualifying business property using an editable tax-year rate and business-use assumption.

Inputs

Business depreciation inputs

Choose the tax year that matches the property placed-in-service date and the rate assumption. The calculator does not automatically determine the legal bonus percentage.

Range: 0–100,000,000 $

Enter the depreciable cost or adjusted basis from the business records, excluding land when land is not depreciable. Professional example: 100000. Edit this value for your own facts.

Range: 0–100 %

Enter the portion used for business as a whole percentage, such as 80 for 80%. Personal-use property and listed-property limits may require separate review. Professional example: 100. Edit this value for your own facts.

Range: 0–100 %

Enter the portion of the business-use basis that is eligible for the entered bonus rule. Use 100 only when the entire business-use basis is qualifying property. Professional example: 100. Edit this value for your own facts.

Range: 0–100 %

Enter the applicable rate as a whole percentage, such as 100 for 100%. Verify the rate for the tax year, acquisition and placed-in-service dates, property class, and any transition rule. Professional example: 100. Edit this value for your own facts.

Range: 0–100 %

Enter the marginal rate used only to translate the deduction into an illustrative federal tax-savings estimate. It is not a complete federal, state, or entity tax calculation. Professional example: 22. Edit this value for your own facts.

Result

First-year bonus deduction
100,000.00
Business-use basis
100,000.00
Estimated tax savings
22,000.00
Qualifying basis
100,000.00
Estimate
Remaining depreciable basis
0.00
Tax-year basis
The selected tax year identifies the period for the entered asset and rate assumptions. The bonus rate remains editable and must be verified for the placed-in-service facts.
How to interpret this result
The estimate applies business use, qualifying-property percentage, and the entered bonus rate to the asset basis. Estimated tax savings multiply the bonus deduction by the entered marginal rate assumption.
Applicability and limits
This is a planning estimate for qualifying business property. It does not determine eligibility, recovery period, listed-property limits, placed-in-service timing, state conformity, taxable-income effects, recapture, or the correct bonus rate.
Calculation basis
Business basis = asset basis × business-use percentage. Qualifying basis = business basis × qualifying-property percentage. Bonus deduction = qualifying basis × bonus rate. Remaining basis = business basis − bonus deduction. Estimated tax savings = bonus deduction × marginal tax rate.

Formula

Calculation logic

Formula definitions and substituted values.

What to check

  • A business owner or payroll team enters wages, profit, asset, entity, and rate assumptions to estimate an employer or business tax result.
  • Use it when hiring, choosing an entity structure, buying equipment, or planning business tax payments.
  • This is a planning estimate for qualifying business property. It does not determine eligibility, recovery period, listed-property limits, placed-in-service timing, state conformity, taxable-income effects, recapture, or the correct bonus rate.

Related calculators

This is a planning estimate for qualifying business property. It does not determine eligibility, recovery period, listed-property limits, placed-in-service timing, state conformity, taxable-income effects, recapture, or the correct bonus rate.