Bonus depreciation in 2023: 80% under TCJA phase-down (80%)
The 2023 IRC §168(k) bonus depreciation rate is 80%. TCJA §13201 began the phase-down with an 80% rate for qualified property placed in service. With a worked $500k rental example.
The 2023 bonus rate at a glance
Property acquired and placed in service in 2023 is eligible for a 80% bonus depreciation rate under IRC §168(k). The applicable regime is TCJA phase-down (80%).
TCJA §13201 began the phase-down with an 80% rate for qualified property placed in service in 2023. OBBBA (Pub. L. 119-21, signed July 4, 2025) did NOT change this rate retroactively — 2023 stays at 80% for §481(a) look-back catch-ups.
How a sample $500k rental looks under the 2023 rate
To make the rate concrete, here is a worked feasibility estimate for a long-term rental purchased in 2023 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 2023 vs. other years
TCJA §13201 began the phase-down here at 80%. The 20% of accelerable basis NOT bonus-depreciated continues through MACRS at 200%/150% DB rates per IRS Pub 946 Tables A-1.
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