MACRS Depreciation Calculator with Section 179 and Bonus

Calculate MACRS depreciation year by year with the IRS tables, Section 179 and bonus depreciation, for equipment, vehicles and rental or commercial property.

Cost of the property

Property class

Business use (%)

Section 179 expense

Bonus depreciation (%)

Month placed in service

Deduction in the first year

—Depreciable basis

—Section 179

—Bonus depreciation

—Tax years

Year	MACRS rate	Deduction	Remaining basis

GDS with the half-year convention (IRS Publication 946, table A-1); rental and commercial buildings use straight line with the mid-month convention and no Section 179 or bonus. If more than 40% of the year's property is placed in service in the last quarter, the mid-quarter convention applies. Section 179 cannot exceed your business income.

What it does

MACRS is the depreciation system of the IRS: each type of property has a recovery period and a table of yearly rates. Equipment and vehicles use a declining balance that front-loads the deduction; buildings use a straight line. Section 179 and bonus depreciation let you deduct part or all of the cost in the first year.

How to use it

Type the cost and choose the property class; for buildings, leave out the value of the land.
Type the business use, the Section 179 amount and the bonus percentage, or the month for a building.
See the first-year deduction and the table year by year.

The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.

Frequently asked questions

How do I calculate MACRS depreciation?
Multiply the cost by the rate of each year from the IRS table. A 10,000 computer (5-year property) gives 2,000, 3,200, 1,920, 1,152, 1,152 and 576: the half-year convention adds a sixth year.

How is a rental property depreciated?
Over 27.5 years in a straight line, from the middle of the month. A 300,000 building (without the land) placed in service in July gives 5,000 in the first year and then 10,909.09 a year.

Should I use Section 179 or bonus depreciation?
Both deduct the cost in the first year. Bonus depreciation is 100% for property acquired after January 19, 2025 and has no income limit; Section 179 is limited to 2,560,000 in 2026 and to your business income, but you choose the amount for each asset.

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