Bonus depreciation

Bonus Depreciation Calculator for Real Estate

100% bonus depreciation is back for property acquired after Jan 19, 2025. See what it's worth on your property; free, in 2 minutes.

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Use the calculator to estimate bonus depreciation impact

Cost segregation calculator: Add your property details to calculate potential accelerated depreciation expense utilizing a cost segregation study.

Trusted by thousands of property owners

Not a replacement for your CPA. This calculator gives you a planning estimate. Your free proposal includes the engineered study your CPA files with confidence.

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"Excellent experience with R.E. Cost Seg. The team was knowledgeable, responsive, and easy to work with throughout the entire process. They answered all my questions promptly and provided clear guidance every step of the way. I appreciate their professionalism and customer-focused approach and would recommend them to anyone considering a cost segregation study."

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"Great experience with R.E. Cost Seg. Their analysis saved me real money, and the team was professional, responsive, and easy to work with. Communication was excellent throughout. Highly recommend."

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"Completed a Rapid Report for our recently purchased rental property. Working with R.E. Cost Seg was a great experience.

The Rapid Report process was straightforward and easy to complete for a 2-1 rental. The team was professional, responsive, and excellent at communication throughout. Documentation provided went straight to my tax professional - no questions, not clarifications required. Highly recommend them."

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How to use this bonus depreciation calculator

Enter purchase price and land value (land isn’t depreciable).

Select the placed-in-service date (timing drives tax year results).

Add renovation cost if applicable.

Choose your bonus depreciation option.

Select tax filing year and your tax rate.

What your results mean (the Year 1 numbers to watch)

No Study

Standard depreciation without cost segregation reallocation.

Baseline

Planning-range estimates for potential reallocation into shorter-life property.

Optimal

Planning-range estimates for potential reallocation into shorter-life property.

Key outputs

Estimated Year 1 Tax Savings

An estimate of how much your taxes could drop in the first year based on additional depreciation deductions (using your selected tax rate).

Estimated Year 1 Accelerated Depreciation

The portion of first-year depreciation that's 'pulled forward' via cost segregation (and bonus depreciation, if selected), above what standard depreciation would typically produce.

Net Depreciation Increase

The difference between accelerated depreciation and standard ('no study') depreciation, showing the incremental deduction created by the cost seg approach.

Deductions 1st 5 years

A cumulative estimate of total depreciation deductions over the first five years under each scenario (standard vs accelerated ranges).

Depreciation Over Time

A longer-term view of how depreciation deductions are spread across future years, illustrating timing differences (more deductions earlier vs later), not necessarily a change in total depreciation over the full life.

With cost segregation

Standard depreciation

HighLow

Y1Y2Y3Y4Y5Y6Y7Y8Y9Y10

Important: This calculator provides estimates for planning. Eligibility and final classification depend on property-specific facts, documentation, and current-year rules.

Bonus depreciation vs depreciation over time

Accelerated depreciation and bonus depreciation are primarily about timing, shifting deductions earlier, rather than creating deductions from nothing. Use the “Depreciation Over Time” and “Deductions 1st 5 years” outputs to understand the broader schedule effect.

Year 1 deduction · illustrative

front-loaded swing

Standard Accelerated (cost seg)

Frequently asked questions

Which scenario should I use, conservative or optimistic, and what do they represent?

Use conservative when you want a planning range that assumes a smaller reallocation into shorter-life property; use opptimistic for a higher-end estimate. Actual outcomes depend on property details, documentation, and how components are ultimately classified.

How do renovations or improvements impact bonus depreciation eligibility and estimates?

Renovations can create new capitalized assets. If portions of the renovation are classified as eligible shorter-life property, those components may qualify for bonus depreciation (depending on the year and eligibility rules). Other renovation costs may remain long-life building components.

How does the placed-in-service date affect bonus depreciation and my Year 1 result?

Timing matters. The placed-in-service date determines the tax year the depreciation begins and can affect how much depreciation lands in Year 1 (including whether bonus depreciation is available/what percentage applies in that year).

Does bonus depreciation apply to the building itself (the main 27.5- or 39-year structure)?

Usually, no. The main building structure is typically depreciated over 27.5 years (residential rental) or 39 years (commercial). Bonus depreciation is more commonly available for shorter-life components that may be identified through cost segregation.

What counts as “qualified property” for bonus depreciation in real estate (and what usually doesn’t)?

Bonus depreciation generally applies to qualifying shorter-life property (often 5-, 7-, or 15-year components) rather than long-life structural building components. What qualifies depends on the facts, the asset’s classification, and the rules in effect for the tax year.