CalculateRealEstateROI

Tax Concepts

Bonus Depreciation

First-year depreciation allowance for qualifying property, taken in addition to standard.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

100% in 2017-22; phasing down 20% per year. 40% in 2025; 0% in 2027 unless extended.

Examples

  • Cost seg + 60% bonus (2024) = ~$180k year-1 deduction on $1M property.

Common mistakes

  • Missing the phase-down schedule.

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