What is the bonus depreciation rate for 2024?

For assets placed in service in 2024, bonus depreciation is 60% of the qualified property cost. This is down from 100% in 2022 and is phasing down annually until it reaches 0% in 2027.

What types of property qualify for bonus depreciation?

Qualified property with a MACRS recovery period of 20 years or less, certain computer software, and qualified improvement property (QIP). Used property may qualify if not previously owned.

Is bonus depreciation better than Section 179?

Bonus depreciation has no income limitation; Section 179 cannot exceed taxable income. For high-income years, Section 179 is preferred first; bonus covers remaining basis.

Bonus Depreciation Calculator

Calculate first-year bonus depreciation deduction. 2023: 80%; 2024: 60%; 2025: 40%; 2026: 20%; 2027: 0% (under current TCJA phase-down). Shows tax savings vs MACRS.

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Frequently Asked Questions

What is the bonus depreciation rate for 2024?

What types of property qualify for bonus depreciation?

Is bonus depreciation better than Section 179?