Tax Planning Tool

Farm Equipment Depreciation Calculator

Compare buying in 2026 versus waiting to 2027 as bonus depreciation drops from 40% to 20%.

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Equipment name

Purchase price ($)

Asset class

Section 179 election

Section 179 amount to elect ($)

Estimated taxable income before this purchase ($/year)

Marginal tax rate (%)

Apply bonus depreciation to remainder

Total equipment purchases this year so far ($)

2026 assumptions: Section 179 limit $1,220,000 (phase-out starts at $3,050,000), 40% bonus depreciation, and year-1 MACRS 150% DB half-year convention rates by class.

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Year 1 Deduction Summary

Section 179 deduction $0.00

Bonus depreciation $0.00

Year 1 MACRS depreciation $0.00

Total Year 1 deduction $0.00

Tax savings Year 1 $0.00

Net after-tax cost $0.00

Effective cost reduction 0%

Remaining depreciable basis $0.00

2026 vs 2027 - Why This Year Matters

Metric	2026 (40% bonus)	2027 (20% bonus)	Difference
Year 1 deduction	$0.00	$0.00	$0.00
Year 1 tax savings	$0.00	$0.00	$0.00

Buying in 2026 saves you $0.00 in taxes vs waiting to 2027.

Multi-Purchase Tracker (up to 5 items)

Add multiple planned purchases to see cumulative Section 179 usage, bonus depreciation, and tax savings.

0 of 5 items Below phase-out threshold

Item	Price	S179	Bonus	Year 1 Deduction	Tax Savings	Remove
No items added yet.

Cumulative Section 179 used $0.00

Cumulative bonus depreciation $0.00

Cumulative Year 1 deduction $0.00

Total tax savings $0.00

This calculator provides estimates for planning purposes only. Tax laws are complex and individual situations vary. Consult a qualified tax professional or CPA before making tax elections. Numbers reflect 2026 tax law as of February 2026.