Calculate IRS-compliant depreciation schedules for business assets, rental properties, and equipment. Our free calculator supports MACRS, Section 179, and Bonus Depreciation with accurate schedules you can use for tax filing.
Depreciation is a tax deduction that allows businesses to recover the cost of assets over time. Instead of deducting the full purchase price in year one, the IRS requires spreading the deduction across the asset's useful life. This applies to equipment, vehicles, buildings, furniture, and other business property.
MACRS (Modified Accelerated Cost Recovery System) is the primary depreciation method used for tax purposes in the United States. It provides accelerated depreciation, meaning larger deductions in the early years of an asset's life.
Section 179 lets you choose specific assets to expense immediately, up to annual limits. Bonus Depreciation automatically applies to all qualifying property. You can use both: Section 179 first, then Bonus Depreciation on the remaining basis.
Residential rental property uses 27.5-year straight-line depreciation. Commercial property uses 39 years. Land is never depreciated. Only the building value qualifies for depreciation deductions.
Disclaimer: This calculator is for educational purposes only and does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.
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