MACRS depreciation calculator for equipment
Tax depreciation for each year from the IRS MACRS tables (general depreciation system, half-year convention), with optional bonus depreciation taken first.
Your numbers
The propertyOptions See your resultResult
Deduction in year 1 $50,00020% of $250,000 Year 1 $50,00020% Year 2 $80,00032% Year 3 $48,00019.2% Year 4 $28,80011.52% Year 5 $28,80011.52% Year 6 $14,4005.76% Stop working this out by handFleetZap keeps each machine’s documents, meter readings and every repair cost in one record, so the history behind keep-or-replace decisions is in one place.
See FleetZap Maintenance · Try the demoThe formula
Deduction in a year = (Basis − Bonus depreciation) × MACRS rate for that year
The rates are the IRS half-year convention table (Publication 946, Table A-1). A 5-year machine is written off over six tax years, because the first and last get half a year each: $250,000 gives $50,000 in year 1 and $80,000 in year 2. If more than 40% of the year’s purchases are placed in service in the last quarter, the mid-quarter convention applies instead, and this calculator doesn’t cover it. This is an estimate, not tax advice; check with your accountant.
Using the numberWhat to do with it
- Tax depreciation and management depreciation answer different questions. For pricing jobs and replacement decisions, use the equipment depreciation calculator’s per-hour figure.
- Bonus depreciation or Section 179 can write off most of a purchase in year 1; the Section 179 calculator shows the 2026 limits.
- Keep the purchase invoice, the in-service date and the business-use record with the machine’s file; that is what an auditor asks for.
Guides behind this calculator
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The heart of FleetZap, and everything a maintenance team needs in one place: work orders and preventive maintenance, inspections and the field app, plus a parts store with purchasing, compliance and certificate tracking, multi-location assets with a full lifecycle, and the KPIs that prove it’s working.
- Work orders
- Preventive maintenance
- Procedures, inspections & field app
- Parts & purchasing
- Compliance
- Assets, reports & KPIs
Good to know
What is MACRS depreciation?MACRS is the depreciation system the IRS uses for most business property. Each asset gets a recovery period and a table of yearly percentages; the deduction each year is the basis times that year's rate.
Is construction equipment 5-year or 7-year property?IRS Publication 946 lists construction (asset class 15.0) and general-purpose trucks as 5-year property. Many other machines fall in 7 years. Check the asset class tables or ask your accountant.
Why does 5-year property take six years?The half-year convention treats property as placed in service in the middle of the year, so the first and last years each get half a year of depreciation.
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