Bonus depreciation in 2025: 100% under Bimodal under OBBBA

The 2025 IRC §168(k) bonus depreciation rate is 100%. Property acquired on or before January 19, 2025 falls under the pre-OBBBA TCJA tail rate o. With a worked $500k rental example.

The 2025 bonus rate at a glance

Property acquired and placed in service in 2025 is eligible for a 100% bonus depreciation rate under IRC §168(k). The applicable regime is Bimodal under OBBBA.

Property acquired on or before January 19, 2025 falls under the pre-OBBBA TCJA tail rate of 40%. Property acquired after January 19, 2025 falls under the OBBBA permanent 100% rate. Most 2025 buyers who closed mid-year fall under the 100% regime.

How a sample $500k rental looks under the 2025 rate

To make the rate concrete, here is a worked feasibility estimate for a long-term rental purchased in 2025 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) $80,421

Year-1 deduction (standard) $7,879

Estimated Year-1 federal tax effect (32%) ~$25,735

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

What changes about 2025 vs. other years

The bimodal year. Owners who closed Jan 1-19, 2025 are stuck at 40%; owners who closed Jan 20+ get 100%. IRS Notice 2026-11 codifies the inflection date.

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.