Free real estate tax scenario tool
Bonus Depreciation Calculator
Estimate the federal bonus deduction on eligible net lease property components. Separate land from depreciable basis and see what remains after bonus depreciation.
Calculate bonus depreciation for your property
Enter supported basis amounts and a confirmed bonus percentage. Results update as you type; no login or contact details required.
Starts with the illustrative $3 million net lease scenario below. Replace every assumption with your own supported figures.
Include land. Use your tax basis after applicable adjustments, not the loan amount.
Land is excluded from depreciation. Use a supported allocation.
Enter documented eligible basis after business-use, Section 179, and other applicable adjustments. The example is not an assumed allocation for your property.
100% is an example for qualifying post-January 19, 2025 property. Confirm eligibility, timing, and elections with your tax adviser.
Estimated bonus deduction
$720,000.00
- Depreciable basis excluding land
- $2,400,000.00
- Eligible basis remaining after bonus
- $0.00
- Other depreciable basis (outside this bonus calculation)
- $1,680,000.00
This is a deduction scenario, not a refund or total first-year depreciation. Regular MACRS, state rules, loss limitations, and future recapture are not calculated.
The formula and a net lease example
Bonus deduction = eligible adjusted basis × bonus depreciation rate
Consider a $3,000,000 adjusted property basis with $600,000 allocated to land. That leaves $2,400,000 of depreciable basis. If a supported cost segregation study identifies $720,000 of eligible components and the applicable bonus rate is 100%, the bonus deduction is $720,000 before taxpayer-level limitations. The other $1,680,000 follows its applicable depreciation rules.
At a confirmed 40% rate, the same eligible basis produces a $288,000 bonus deduction and leaves $432,000 of eligible basis for applicable remaining depreciation. Neither scenario calculates regular depreciation on the remaining assets. The example allocation is illustrative, not a typical or guaranteed percentage.
What qualifies for net lease bonus depreciation?
Start with the assets you own and their documented tax classification. Certain equipment and land improvements may qualify; an NNN lease label by itself establishes no deduction. A cost segregation study can identify components, but it does not make land or an ordinary building shell automatically eligible.
Use the net lease bonus depreciation guide for landlord versus tenant ownership, acquisition timing, cost segregation, and questions to resolve before closing. For an exchange, review the 1031 exchange guide with your adviser rather than treating purchase price as new depreciable basis.
Current federal rules and calculator assumptions
As checked September 23, 2026, the federal 100% rule generally applies to qualified property acquired and placed in service after January 19, 2025. Confirm written binding contract dates and any elections before using that rate. This tool intentionally asks for a confirmed percentage instead of choosing one from the year alone.
Use adjusted basis after business-use allocations, any Section 179 deduction, and other required adjustments. The calculator does not apply acquisition eligibility tests, MACRS conventions, vehicle limits, state conformity, passive-loss limits, or sale recapture. It models a single group of components at one bonus rate.
Clear answers
Frequently asked questions
Straightforward answers to the questions investors ask most often.
How do you calculate bonus depreciation?
Multiply the adjusted basis of eligible property by its applicable bonus depreciation percentage. For real estate, first exclude land and identify qualifying components. This calculator uses your supplied eligible basis and rate; it does not determine eligibility or calculate regular MACRS depreciation.
Can I deduct 100% of a net lease purchase price?
No blanket rule allows that. Land is not depreciable, and an ordinary 39-year commercial building shell is generally outside Section 168(k) bonus depreciation. Eligible shorter-life components may qualify; ownership, classification, timing, elections, and taxpayer limitations matter.
Is the bonus depreciation rate 100% in 2026?
Current federal law generally permits 100% bonus depreciation for qualified property acquired and placed in service after January 19, 2025. Earlier acquisitions, binding contracts, elections, and special rules can change the result. A calendar year alone does not establish the rate.
Does this estimate my tax refund?
No. A deduction reduces taxable income when usable; it is not a dollar-for-dollar tax credit. Your tax rate, passive-loss and other limitations, state rules, and recapture can change the timing and value of any benefit.
Find properties that fit your investment criteria
Tell us your budget, target markets, tenant preferences, and acquisition timeline. Evaluate the real estate and lease economics alongside your tax professional's basis analysis.