Does this follow MACRS tables?

No. It shows a straight-line view on the remainder for simplicity. Use MACRS schedules for exact deductions.

Is Section 179 included?

No. This focuses on bonus depreciation only.

What about mid-quarter conventions?

Not modeled. This is a planning snapshot.

No caps modeled; enter realistic costs and recovery periods.

No. It’s an estimate. Consult a tax professional for filing.

finance calculator

Bonus Depreciation Calculator

Calculate bonus depreciation and remaining basis, plus straight-line deduction on the remainder.

Results

Bonus deduction: $30,000
Remaining basis: $20,000
Straight-line on remainder (per year): $4,000

How to use this calculator

Enter asset cost.
Enter bonus rate (current-year percentage).
Enter recovery period in years.
Review bonus deduction, remaining basis, and straight-line of the remainder.

Inputs explained

Bonus rate: Bonus percentage for the placed-in-service year (phase-down applies by year).
Recovery period: Asset class recovery years under MACRS (simplified straight-line shown here).

How it works

Bonus deduction = Cost × Bonus rate.

Remaining basis = Cost − Bonus deduction.

Straight-line remainder = Remaining basis ÷ Recovery years (simplified view of annual depreciation on the remainder).

Formula

Bonus = Cost × Bonus rate
Remaining basis = Cost − Bonus
Straight-line remainder = Remaining basis ÷ Recovery years

When to use it

Estimating first-year deduction from bonus depreciation.
Planning tax impact of purchasing equipment before year-end.
Comparing bonus vs no-bonus scenarios for cash flow planning.

Tips & cautions

Phase-down rates change by year; set the correct bonus rate.
This shows a simple straight-line on the remainder; actual MACRS uses accelerated schedules.
Section 179 expensing is separate; not modeled here.
Simplified: uses straight-line on the remainder, not actual MACRS tables.
Does not apply mid-quarter conventions or Section 179 rules.
Not tax advice; consult a tax professional for detailed depreciation schedules.

Worked examples

$50k asset, 60% bonus, 5-year recovery

Bonus = $30,000
Remaining = $20,000
Straight-line remainder ≈ $4,000/yr

$80k asset, 80% bonus, 7-year recovery

Bonus = $64,000
Remaining = $16,000
Straight-line remainder ≈ $2,286/yr

Deep dive

Calculate bonus depreciation and remaining basis by entering asset cost, bonus rate, and recovery years.

See the first-year bonus deduction and a simple straight-line view on the remainder for planning.

FAQs

Does this follow MACRS tables?: No. It shows a straight-line view on the remainder for simplicity. Use MACRS schedules for exact deductions.
Is Section 179 included?: No. This focuses on bonus depreciation only.
What about mid-quarter conventions?: Not modeled. This is a planning snapshot.
Are limits included?: No caps modeled; enter realistic costs and recovery periods.
Is this tax advice?: No. It’s an estimate. Consult a tax professional for filing.

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