Unlike Section 179, bonus depreciation has no dollar cap and can create or increase a net operating loss — and applies to used as well as new qualifying property.
How it works
The applicable bonus percentage is multiplied by the property’s cost to get the immediate deduction; whatever’s left depreciates on the standard schedule.
What this does not include
The applicable percentage depends on when the property was acquired and placed in service — 100% is now permanent for property acquired after January 19, 2025, but older transitional rates apply to earlier acquisitions, which this calculator takes as a direct input rather than determines from an acquisition date.
How to use this calculator
- Enter the qualifying property cost and the applicable bonus percentage.
Frequently asked questions
Can I use both Section 179 and bonus depreciation on the same property?
Yes, typically in that order — Section 179 first, then bonus depreciation on whatever remains, though the specific ordering and interaction should be confirmed with current guidance.
Why was 100% bonus depreciation restored?
The One Big Beautiful Bill Act permanently reinstated it for property acquired after January 19, 2025, reversing the phase-down schedule that had been reducing it toward zero.
Does bonus depreciation apply to real property?
Generally not to buildings themselves, but often to shorter-life components identified through cost segregation — this site’s cost segregation calculator covers that specific application.
