2025-2026 US Real Estate Bonus Depreciation Phase-Out Calculator

Enter your specific variables below to compute accurate, real-time results.

Input Variables

Property Purchase Price (USD)

Cost Segregation Allocation (5, 7, 15-yr property) (%)

Year Placed in Service (Year)

Marginal Income Tax Rate (%)

AI Analysis Results

Input your variables and
click calculate to see results.

Expert FAQ

A: Items with a useful life of 20 years or less qualify. This includes furniture, appliances, carpeting (5-year), and land improvements like paving, fencing, and landscaping (15-year). A cost segregation study is required to separate these from the 27.5-year structural building value.

A: Yes, thanks to the TCJA, bonus depreciation applies to both new and 'used' (new to you) property, provided you have not previously used the property before purchasing it.

A: If your depreciation creates a loss, it may be limited by 'passive activity loss' rules unless you qualify as a Real Estate Professional (REP) or meet the Short-Term Rental (STR) loophole requirements.

Verified Logic Engine

This calculator's logic is modeled by FinCal AI Agents. All formulas are cross-referenced with 2026 tax codes and investment benchmarks to ensure maximum precision.