Bonus depreciation in 2024: 60% under TCJA phase-down (60%)

The 2024 IRC §168(k) bonus depreciation rate is 60%. TCJA §13201 set the 2024 rate at 60%. OBBBA did not change this rate retroactively — 2024. With a worked $500k rental example.

The 2024 bonus rate at a glance

Property acquired and placed in service in 2024 is eligible for a 60% bonus depreciation rate under IRC §168(k). The applicable regime is TCJA phase-down (60%).

TCJA §13201 set the 2024 rate at 60%. OBBBA did not change this rate retroactively — 2024 stays at 60% for §481(a) look-back catch-ups on properties acquired in that year.

How a sample $500k rental looks under the 2024 rate

To make the rate concrete, here is a worked feasibility estimate for a long-term rental purchased in 2024 for the calculator's standard sample inputs (32% federal marginal bracket, real-estate professional status):

Purchase price $500,000

Land allocation $100,000

Depreciable basis $400,000

Reclassified (5/7/15-yr) 18.5%

Year-1 deduction (cost-seg) $55,015

Year-1 deduction (standard) $7,879

Estimated Year-1 federal tax effect (32%) ~$17,605

Numbers are estimates from the live engine; results are not guaranteed and will vary for any specific property.

What changes about 2024 vs. other years

The phase-down's halfway point at 60%. For §481(a) catch-up purposes, look-back studies on 2024-acquired property still use this 60% rate — OBBBA was prospective for property acquired after Jan 19, 2025.

Run the numbers on your specific property

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Open the calculator with these values prefilled

Sources

IRC §168(k) as amended by OBBBA §70301 (Pub. L. 119-21)

IRS Notice 2026-11

IRS Publication 946 (How to Depreciate Property)

TCJA §13201 (pre-OBBBA phase-down rates for 2023/2024)

Disclaimer. This page describes general federal tax concepts. TaxProtestTx (Nought Labs LLC) is a feasibility-screening tool, not tax advice or a cost segregation study. The calculator output cannot be relied on under Treasury Circular 230. Consult a qualified CPA, EA, or attorney before filing. Results are not guaranteed.