Bonus Depreciation Calculator

See how much of your short-life rental property you can deduct in year one, and the tax it saves.

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Not sure how much of your building qualifies? The cost segregation calculator estimates how much basis reclassifies into short-life, bonus-eligible property.

Bonus depreciation

100%

for 2026

First-year tax savings

$32,000

First-year deduction$100,000
Basis depreciated normally after$0

Informational and educational only, not tax advice, and no accountant-client relationship is created. Estimates use simplified assumptions and do not reflect your specific situation. Verify current tax law and consult your CPA before filing.

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Frequently asked questions

What is bonus depreciation?

Bonus depreciation lets you deduct a large percentage of the cost of qualifying property with a recovery period under 20 years in the year it is placed in service, instead of spreading it out. For real estate investors this applies to the short-life components of a building, such as appliances, fixtures, and land improvements.

What is the bonus depreciation percentage in 2025 and 2026?

It is 100 percent. The 2025 tax law permanently restored 100 percent bonus depreciation for property placed in service on or after early 2025. During the phase-down it was 80 percent in 2023 and 60 percent in 2024.

Does bonus depreciation apply to a rental property?

Not to the building itself, which depreciates over 27.5 or 39 years, but to its short-life components. A cost segregation study identifies how much of the purchase price qualifies as 5 and 15-year property, which is then eligible for bonus depreciation.

Is this calculator tax advice?

No. It is an educational estimate. Confirm the qualifying basis and the result with a CPA before relying on them.