Bonus depreciation calculator
100% bonus depreciation, applied to your rental
Bonus depreciation is back at 100% and permanent for homes bought after January 19, 2025. Earlier purchases use the phase-down rate. Enter your dates and the calculator picks the right one.
Estimated tax savings on your 2026 return
Example property$30k – $43k
From $95k–$134k of extra depreciation, compared with $7,091 without a study.
| Depreciation | 2026 deduction | 5 years |
|---|---|---|
| No study | $7,091 | $59,455 |
| With a study, low | $102,376 | $140,602 |
| With a study, high | $141,196 | $173,662 |
Where your $360,000 of basis goes with a study
- 5-year items
- $82,800
- 15-year site work
- $54,000
- 27.5-year building
- $223,200
Express Study from $895
About 41× its cost in year one
- Uses 100% bonus depreciation, available for homes bought and placed in service after Jan 19, 2025.
- Long-term rental losses are passive. They offset W-2 income only with real estate professional status or the $25k allowance (phases out above $100k income). Unused losses carry forward.
Getting an accurate number
- 1
Enter the closing date
If you signed the purchase contract before January 20, 2025, use the contract date instead. A pre-2025 binding contract keeps the older rate.
- 2
Enter the in-service date
When the home was ready and listed for rent. Bonus is taken in full for that year, even if it was December.
- 3
Add renovations
Improvements placed in service after January 19, 2025 qualify for 100% on their short-life portion, even on a home you bought earlier.
- 4
Compare low and high
The spread reflects how much of a typical home of that type is 5- and 15-year property.
Bonus rate by date
Acquired and in service after Jan 19, 2025: 100%, permanently.
Acquired before Jan 20, 2025: 100% through 2022, 80% in 2023, 60% in 2024, 40% in 2025, 20% in 2026, then zero.
Homes acquired before September 28, 2017 got no bonus on used property. A look-back study can still move their short-life parts to 5- and 15-year schedules and catch up the difference.
Reading the three rows
No study is the default schedule.Low and high bracket the share of basis studies usually move for that property type. Furnished homes, newer finishes and more site work land closer to high.
Questions
What's the deal with 100% bonus depreciation?
The One Big Beautiful Bill Act, signed July 4, 2025, made 100% bonus depreciation permanent for property acquired and placed in service after January 19, 2025. Only the 5-, 7- and 15-year parts a study identifies qualify; the building itself never does.
Homes under a binding purchase contract before January 20, 2025 keep the older phase-down: 60% if placed in service in 2024, 40% in 2025, 20% in 2026. You can also elect out of bonus by asset class if a smaller first-year deduction suits your plans better.
Does bonus depreciation apply to the house itself?
No. Bonus depreciation covers property with a recovery period of 20 years or less. The building is 27.5 or 39 years, so it never qualifies. Bonus applies only to the 5-, 7- and 15-year parts, and a cost segregation study is how you identify them.
Which date decides my bonus rate?
Both dates matter. For 100%, the home must be acquired after January 19, 2025 (when a written binding contract was signed counts) and placed in service after that date. A contract signed in December 2024 that closed in March 2025 gets 40%, not 100%.
Do states follow federal bonus depreciation?
Not all. Several states, including California and New York, don't allow federal bonus depreciation, so state depreciation follows a slower schedule. Your federal savings are unaffected, but the state rate you enter in the calculator overstates the state benefit in those states.
Can I take less than 100%?
You can elect out of bonus for an entire class of property (all 5-year property, for example) on a timely filed return. People do this when the extra loss would be wasted, such as in a low-income year. A study still helps, because the reclassified parts depreciate over 5 and 15 years instead of 27.5.
Other calculators: rental property, Airbnb & STR, renovation
Find out what your rental is worth on this year’s return
A free proposal with your estimated savings and a fixed fee, usually within one business day. Studies start at $895.