100% bonus depreciation after 19 January 2025, or 40% / 20% for earlier purchases
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 30 Oct 2026.The One Big Beautiful Bill Act restored 100% bonus depreciation, permanently, for qualified property acquired and placed in service after 19 January 2025. Property acquired before 20 January 2025 keeps the old phase-down: 40% if placed in service in 2025 and 20% in 2026.
Rates and rules read from the sources listed on this page (the earliest on 30 Oct 2026); they may have changed since.
The "Amount to expense under Section 179" starts at 0, so the whole cost goes to bonus depreciation.
Pick the "Tax year beginning in" and choose before 20 Jan 2025 or after 19 Jan 2025 under "Acquired".
Type the "Cost of qualifying property (business share)".
Read the "Bonus depreciation" figure and "Left for regular MACRS", and open "How it is worked out" for each line.
Enter the cost, the year and when you bought it to see the first-year deduction, alone or after a Section 179 election.
Section 179 lets a business deduct the cost of equipment, machinery, computers and similar property in the year it is placed in service, instead of spreading it over several years. This calculator applies the limits for tax year 2026 or 2025, then bonus depreciation on anything left, and shows the first-year deduction.
Bonus depreciation. After Section 179, bonus depreciation applies to the rest of the cost, and it has no income limit, so it can create a loss. Qualified property acquired and placed in service after 19 January 2025 gets 100%, permanently. Property acquired before 20 January 2025 keeps the old schedule: 40% placed in service in 2025, 20% in 2026. Whatever remains is depreciated under regular MACRS, which this tool does not figure.
Choosing the mix. With 100% bonus depreciation, electing Section 179 above your business income only creates a carryover, because bonus would have deducted the same dollars this year. The calculator shows the election that gives the largest deduction now.
The rest of the article, and all 6 questions about Section 179 Deduction Calculator, are on the Section 179 Deduction Calculator page.
Yes, for qualified property acquired and placed in service after 19 January 2025, which the One Big Beautiful Bill Act made permanent. Property acquired before 20 January 2025, including property under a binding contract signed before then, keeps the old phase-down and gets 20% if placed in service in 2026.
Section 179 is an election capped at a dollar limit and at your business income, with any excess carried forward. Bonus depreciation has no dollar cap and no income limit, so it can create a net operating loss, but it applies to whole classes of property unless you elect out. Section 179 is applied first.
Only the amount up to your taxable business income is deducted this year; the rest carries forward to later years. Business income here includes wages from a job. With 100% bonus depreciation available, it is usually better to elect Section 179 only up to your income and let bonus depreciation cover the rest.
No. Heavy SUVs have their own Section 179 cap, $32,000 for 2026 and $31,300 for 2025, and passenger cars have annual depreciation limits. Enter only the part of the cost that Section 179 can cover, and check the vehicle rules in the Form 4562 instructions before relying on the result.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about Section 179 Deduction Calculator and anybody who knows can answer. No account needed.
Same job, other tools: New York Bonus Tax Calculator – New York State bonus withholding at 11.70%, with the federal 22% and FICA · California Bonus Tax Calculator – California bonus withholding: 10.23% state, 1.3% SDI, plus the federal 22% and FICA · Quarterly Estimated Tax Calculator – Your four 2026 Form 1040-ES payments and dates, with the 90% / 100% / 110% safe harbour.
On the related tools: Additional Child Tax Credit Calculator – How much of the child tax credit comes back as a refund: 15% of earnings over $2,500.
More for US: all 41 US calculators.