The asset
$
What you paid, including delivery and setup; for a building, leave out the land
Property class (GDS recovery period)
5-year: computers, cars, light trucks, office machines
Convention
Half-year (most common)
Mid-quarter applies if more than 40% of the year's assets went into service in the last 3 months
$
Taken off the cost first
Bonus depreciation
None (elected out)
On the cost left after Section 179
First year
Cost
$25,000.00
Section 179
$0.00
Bonus depreciation (0%)
$0.00
Left to depreciate under MACRS
$25,000.00
MACRS, year 1 (20%)
Pub 946 Table A-1
$5,000.00
Total deduction, year 1
$5,000.00
General Depreciation System, 100% business use, calendar tax years. Passenger cars have yearly dollar caps, and listed property used 50% or less for business must use ADS; neither is applied here. An estimate, not tax advice.
Year-by-year schedule
| Year | Section 179 + bonus | MACRS | Deduction | Accumulated | Remaining basis |
|---|---|---|---|---|---|
| 2026 (1) | $0.00 | $5,000.00 | $5,000.00 | $5,000.00 | $20,000.00 |
| 2027 (2) | $0.00 | $8,000.00 | $8,000.00 | $13,000.00 | $12,000.00 |
| 2028 (3) | $0.00 | $4,800.00 | $4,800.00 | $17,800.00 | $7,200.00 |
| 2029 (4) | $0.00 | $2,880.00 | $2,880.00 | $20,680.00 | $4,320.00 |
| 2030 (5) | $0.00 | $2,880.00 | $2,880.00 | $23,560.00 | $1,440.00 |
| 2031 (6) | $0.00 | $1,440.00 | $1,440.00 | $25,000.00 | $0.00 |