Bonus depreciation in 2021: 100% under TCJA-era full bonus
The 2021 IRC §168(k) bonus depreciation rate is 100%. Property acquired and placed in service in this year qualifies for the full TCJA-era 100%. With a worked $500k rental example.
The 2021 bonus rate at a glance
Property acquired and placed in service in 2021 is eligible for a 100% bonus depreciation rate under IRC §168(k). The applicable regime is TCJA-era full bonus.
Property acquired and placed in service in this year qualifies for the full TCJA-era 100% bonus rate under IRC §168(k) prior to the phase-down enacted by TCJA §13201.
How a sample $500k rental looks under the 2021 rate
To make the rate concrete, here is a worked feasibility estimate for a long-term rental purchased in 2021 for the calculator's standard sample inputs (32% federal marginal bracket, real-estate professional status):
Numbers are estimates from the live engine; results are not guaranteed and will vary for any specific property.
What changes about 2021 vs. other years
The full 100% bonus rate applied across all qualified §168(k) classes — 5-year personal property, 7-year furniture/fixtures, and 15-year land improvements all deductible in year one. The TCJA-era rate is also the rate the OBBBA later restored permanently for post-Jan-19 2025 acquisitions.
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