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Bonus Depreciation Calculator

Under current law, 100% bonus depreciation is permanent for qualifying short-life property. Enter your values to estimate the year-one deduction and tax savings.

Your Qualifying Assets

$50K$5M

Total value of 5-year, 7-year, and 15-year property identified by a cost segregation study, or any qualified improvement property.

0%100%

Current law: 100% permanent for property placed in service after Jan 20, 2025.

Tax Rates

0%45%
0% (FL, TX)15% (CA)

Your Results

Year-1 Deduction

Bonus depreciation (100%)$500,000
Remaining basis (depreciated ~10 yrs)$0

Estimated Year-1 Tax Savings

$210,000

Federal (37%)$185,000
State (5%)$25,000

Bonus vs. Straight-Line (Year 1)

Without bonus (straight-line)$21,000
With bonus depreciation$210,000
Year-1 advantage$189,000

Bonus depreciation pulls years of future deductions into year one. The remaining basis still depreciates over its normal life. Time-value of money makes the year-one acceleration more valuable than the headline equivalence suggests.

Informational purposes only.Illustrative estimates. Actual tax savings depend on the specific short-life assets identified in a cost segregation study, the investor's ability to use losses (REPS, passive income, or active offset), state treatment (some states do not conform to federal bonus depreciation), and recapture on eventual sale. Consult a CPA.

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Important Disclosures

Informational Only

This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security.

Risk Statement

Investments involve significant risk, including potential loss of principal, illiquidity, long hold periods, use of leverage, and sponsor discretion. Potential conflicts of interest may exist. All projected returns, including target ROI and preferred return figures, are forward-looking statements and are not guaranteed. Actual results may differ materially. Past performance of the MHC sector or any prior investment is not indicative of future results.

Tax Disclaimer

Tax benefits described herein are estimates only; individual tax treatment varies. Consult a qualified financial, legal, and tax advisor before investing.

Offering Documents

Any investment opportunity will be made available only through formal offering documents.

Accredited Investors Only

Investments are available to accredited investors only as defined under SEC Regulation D.

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