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Bonus depreciation estimate

What year-one deduction does a bonus percentage create on qualifying basis?

Your numbers

Estimated year-one tax savings

$29,600

Bonus depreciation taken$80,000
Remaining basis after bonus$0.00

Tip. Educational estimate with the assumptions listed on this page. Not tax, legal, or investment advice.

Assumptions

  • The basis is already eligible (typically 5, 7, or 15-year property).
  • No taxable-income or passive-loss limitation is applied.
  • 2026 planning default is 100% for qualifying post-January 19, 2025 property.

Explore the numbers

Examples

Load a scenario, then change one input at a time.

Example 1

Furnish an STR

$80k of furniture and equipment at 100%.

Estimated year-one tax savings

$29,600

Example 2

Land improvements

$40k of 15-year property at 100%.

Estimated year-one tax savings

$12,800

Example 3

Partial bonus

Older 60% bonus year on $120k.

Estimated year-one tax savings

$26,640

What this calculates

Turn qualifying short-life rental or business basis into an estimated bonus depreciation deduction and tax savings.

How to use it

  1. Use the personal-property or improvement basis, not the whole building.
  2. Set bonus to the rate that applies to the placed-in-service year.
  3. If you cannot use the loss this year, lower the tax-rate assumption.

Common mistakes

  • Applying bonus to land or 27.5-year residential rental structure.
  • Ignoring that unused losses may be suspended.
  • Forgetting recapture on sale or conversion.

Formula

Bonus = qualifying basis × bonus%. Tax savings = bonus × tax rate.

FAQ

Is furniture for an Airbnb bonus property?

Often yes if it is personal property used in the business and placed in service. Keep invoices.

Does bonus replace a cost-seg study?

No. Bonus needs a qualifying asset class. The study is how you support moving building costs into those classes.

What if my bonus year is not 100%?

Enter the percentage that applies to your placed-in-service date.

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