What is the bonus depreciation percentage for 2024?

60% for qualified property placed in service in 2024. Phase-down: 80% (2023), 60% (2024), 40% (2025), 20% (2026), 0% (2027 and beyond) unless Congress extends 100% bonus.

What property qualifies for bonus depreciation?

Qualified property with a recovery period of 20 years or less (5, 7, 10, 15-year MACRS property), computer software, water utility property, and qualified improvement property.

Does bonus depreciation apply to used property?

Yes. Since 2018, bonus depreciation applies to used property as well as new, with an important exception: must be original use to the taxpayer.

Can bonus depreciation create a loss?

Yes, unlike Section 179, bonus depreciation can create a net operating loss which can be carried forward indefinitely (with 80% limitation) or carried back 2 years in some cases.

Should I elect out of bonus depreciation?

Consider electing out if you expect higher income in future years, are subject to alternative minimum tax, or have passive activity limitations that prevent using the deduction currently.

US Bonus Depreciation Calculator 2024

Calculate bonus depreciation: 60% for 2024 (down from 100% in 2022). Applies to qualified property with recovery period of 20 years or less. Phase-down: 40% (2025), 20% (2026), 0% (2027+).

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Frequently Asked Questions

What is the bonus depreciation percentage for 2024?

What property qualifies for bonus depreciation?

Does bonus depreciation apply to used property?

Can bonus depreciation create a loss?

Should I elect out of bonus depreciation?