Business Asset Deduction Calculator

Business Asset Deduction Calculator (2024/2025)

Maximize Your Tax Write-Offs

This tool helps you calculate the maximum first-year tax deduction for your business assets using Section 179, Bonus Depreciation, and standard MACRS rules.

First-Year Deduction Calculator

Enter your asset details to see how much you can deduct this year. The tool automatically applies the 2024 limits and phase-outs.

1. Asset Cost ($)

2. Asset Class (MACRS) 5-Year (Computers, Light Trucks) 7-Year (Furniture, Equipment)

3. Total Equipment Purchases in 2024 ($)

Your 2024 Deduction Breakdown

Section 179 Deduction

60% Bonus Depreciation

Regular MACRS Depreciation

Total First-Year Deduction

Bonus Depreciation Phase-Down

Bonus Depreciation offers a huge upfront deduction, but the benefit is decreasing each year. This chart illustrates the urgency for businesses looking to make large capital investments.

Asset Classes & Conventions

Depreciation rules depend on the asset type. Here are the most common conventions:

• Personal Property

  5/7 Year Classes (e.g., equipment, furniture). Uses **Half-Year Convention** (or Mid-Quarter if >40% of assets are bought in Q4).

• Residential Real Property

  27.5-Year straight-line (e.g., apartments). Uses **Mid-Month Convention**.

• Nonresidential Real Property

  39-Year straight-line (e.g., offices, warehouses). Uses **Mid-Month Convention**.