What is the bonus depreciation percentage for 2024?

For property placed in service in 2024: 60% first-year bonus depreciation. Remaining 40% depreciates under normal MACRS. Phase-down: 80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026.

What property qualifies for bonus depreciation?

New or used qualified property with a recovery period of 20 years or less, computer software, qualified film/TV production, and qualified improvement property (interior non-structural commercial improvements).

How does bonus depreciation differ from Section 179?

Section 179 is limited to income from active trades or businesses and has a dollar cap ($1.16M in 2024). Bonus depreciation has no dollar cap and can create a net operating loss. Both can be combined.

Bonus Depreciation Calculator

Calculate first-year bonus depreciation deduction for qualified property. 100% bonus depreciation available through 2022, phasing down 20% per year through 2026 (80% in 2023, 60% in 2024).

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate first-year bonus depreciation deduction for qualified property. 100% bonus depreciation available through 2022, phasing down 20% per year through 2026 (80% in 2023, 60% in 2024). Use the bonus depreciation result to inform your calculation.

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Frequently Asked Questions

What is the bonus depreciation percentage for 2024?

What property qualifies for bonus depreciation?

How does bonus depreciation differ from Section 179?