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.

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. 2023: 80%; 2024: 60%; 2025: 40%; 2026: 20%; 2027: 0% (under current TCJA phase-down). Shows tax savings vs MACRS. Use the bonus depreciation result to inform your calculation.

Related Calculators

Section 179

Finance & Accounting

MACRS 5-Year

Finance & Accounting

Straight-Line Depreciation

Finance & Accounting

Bonus Depreciation Calculator

How to Use

Related Calculators

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?