Rough first-year deduction using the 25% average acceleration ratio.
Determines the bonus depreciation rate.
Estimated first-year deduction
$—
Enter a purchase price and land value to see your estimate.
Tax savings
$—
Depreciable basis
$—
How this is calculated
(price − land) × 25% × bonus-rate
= $— × 25% × —
= $—The 25% is the average fraction of depreciable basis that typically reclassifies into 5/15-year property for a residential investment home. Actual engineered studies we've run range from ~19% (urban SFH) to ~28% (SFH with large site improvements).