See how tax strategies could change your tax bill.
This educational tool estimates your federal and state tax, then shows how a deduction or credit could change it, side by side with your current path. It does not recommend any strategy.
✓
Your estimated federal and state tax with no strategy applied
✓
How a deduction or credit could change that estimate
✓
The cost of each strategy next to the estimated tax difference
Live Calculation Preview
Enter your income below to see your numbers.
🔴
Without strategy (Scenario A)
$0
🟢
With strategy (Scenario B)
$0
💰
Est. difference after cost (Year 1)
$0
📈
Hypothetical 5-year value (8% assumption)
$0
Illustrative only — not a guarantee
How the Strategy Works
How tax deductions can lower your taxable income
Here's the core concept, simplified.
1
You buy qualifying equipment or assets
Eligible businesses or passive investments can place qualifying assets in service. Under IRC §168, bonus depreciation allows a large first-year deduction — instead of spreading it over years.
2
The deduction reduces your taxable income
The depreciation amount is subtracted from your gross income before tax is calculated. The larger the deduction, the lower the taxable income — and the lower your estimated tax bill for that year.
3
We compare both paths side by side
This calculator models two scenarios: A — your current path with no deduction strategy — and B — the same income with a deduction applied. You see the estimated difference in real dollars, including implementation cost.
Enter your income → Compare strategies → Fine-tune
Compare strategies for your situation
Results update automatically as you type
⚠ Scenario A — Current Path
No Deduction Strategy
Your estimated tax if you take no additional deductions beyond standard. This is the baseline — what most high earners pay.
$0
Estimated total tax (federal + state)
✓ Scenario B — With Strategy
Strategy Applied
Estimated tax if a deduction is modeled at the amount you select. Includes implementation cost in the comparison.
$0
Estimated total tax (federal + state)
📋 Step 1 · Your Income
Enter your numbers for this tax year. Leave anything that doesn't apply at 0.
Non-business ordinary income — subject to the bonus depreciation cap. Standard deduction subtracted automatically.
Profit from a business you own — self-employment, S-corp or partnership (K-1). No cap on bonus depreciation against this income.
401(k), HSA, Traditional IRA — reduces taxable income
Taxed at 2026 LTCG rates (0%/15%/20%) + 3.8% NIIT where applicable — not ordinary brackets
🏆 Step 2 · Compare Strategies
🎯 Step 3 · Fine-Tune Your Strategy
Pick a row in Step 2 to load it here, or choose any strategy yourself. The Scenario A / B totals at the top of the calculator update as you change these settings.
Uses bonus depreciation - state conformity matters
For your reference only
Set automatically from your state — only change this if your CPA advises otherwise.
$0 cap — enter W-2 and/or business income above
⚙️ Strategy Parameters
Contribution: $50,000 · 1 unit — minimum 1 unit ($35,000). Any combination of the six unit types is allowed, and scales as high as you like.
Contribution: $100,000 · 1 GPU — minimum a half GPU ($50,000). Add as many half or full GPUs as you like (for example 2 GPUs = $200,000).
Gross deduction = $250,000 ($50,000 × 5×)
In plain terms: each $1 you put in creates this many dollars of tax deduction. It's set by the program — keep the default if you're unsure.
5× factor
$50,000 × 5 = $250,000 gross deduction
$0
$5,000
$5,000 × number of units purchased (half units and full units both trigger the fee)
$0
$5,000 × number of GPU units purchased (half and full both count), not added to the write-off
Included in the net difference calculation — you see the real cost vs benefit
🏠 Client's Other Itemized Deductions (Optional)ⓘ
This deduction is a business-loss item, not an itemized one — it reduces income directly regardless of whether the client itemizes. If their mortgage interest and state/local taxes on their own already exceed the standard deduction, they'd itemize either way. Enter those amounts here so both scenarios reflect that accurately. Leave blank to assume the standard deduction.
Annual mortgage interest on primary/secondary home (up to $750K acquisition debt).
2026 SALT CAP (AUTO-CALCULATED)
$40,400
MFJ — full cap (MAGI ≤ $505,000)
Allowed: $0
Standard deduction is being used (mortgage + SALT below the threshold to itemize).
📊 Full breakdown
ITEMIZED DEDUCTION BREAKDOWN
🔗 Stack Multiple Strategies
Check any combination below. Each deduction pools against the same combined ordinary income + LTCG — the order doesn't change the total benefit, since every cap here (60% of AGI, the business+W-2 bonus depreciation limit) is independent of what else is stacked, so this is already the mathematically optimal allocation. State conformity is modeled separately for Charitable and for the pooled Bonus Depreciation strategies (Tiny Homes/Equipment/Solar/Solar2 share one annual cap AND one state-level conformity fact, since bonus depreciation conformity doesn't vary by asset type). Bonus depreciation is applied first (current and future years); Solar's ITC then carries back/forward around it.
Remaining simplification: Solar Strategy 2 (Dynamic System Pricing) never claims an ITC even standalone — its "ITC-equivalent" figure is only used internally to size the bonus depreciation. Solar (Strategy 1) uses the full 3-year-back/20-year-forward ITC carryback engine, same as its standalone view. Structured Ownership (below) is independent of the other five — its own eligibility rules, not the shared bonus-depreciation or charitable caps — and it's a 16-year deferral, not a permanent reduction. Its two variants (Ordinary Business Income, Long-Term Capital Gains) only appear below once your entered income actually qualifies (min $1,000,000 business/pass-through income, or min $1,000,000 LTCG) — not yet included in AI Assist, since that assumes permanent deductions.
🤖 AI ASSIST
What's the client's goal?
Evaluates every strategy below — individually and stacked together — using whatever amounts, multipliers, and fees are currently entered for each, and ranks the top 3 for the goal you pick.
Breakdown view:
"Stacked Total" pools every checked strategy into one combined Scenario B (existing behavior). "Compare Individually" shows what each checked strategy would do on its own — same income, same cap rules, computed as if it were the only strategy you picked — side by side.
Your actual cash outlay — leveraged by the multiplier below into the deductible gift
Gift = $25,000 × 5 = $125,000
$5,000
LLC expense: 10% of the contribution, capped at $12,500 — same as the single-strategy Charitable view
Mortgage interest and SALT are entered once, above, in "Other Itemized Deductions" — they're personal return-level deductions that apply to the whole stack, not just to Charitable.
Applies the selected state's actual charitable rule when "Does Not Conform" is chosen (lower AGI cap, flat credit, no deduction, etc.)
Shared by Tiny Homes, Solar, and Solar Strategy 2 below — this is a fact about the selected state, not about which asset generated the deduction.
Same unit pricing as the single-strategy Tiny Homes view — mix any combination of half and full units. Investment amount and the $5,000-per-unit fee are calculated automatically, and scale as high as you like.
$50,000
1 unit — minimum 1 unit ($35,000)
$5,000
$5,000 × number of units purchased (half or full)
Battery Storage uses the same engine: $25,991 project cost per unit, 40% credit, 80% bonus depreciation; $2,500 per unit up front, the rest of the credit amount paid later out of the credits.
Kept in sync with the same toggle on the standalone Solar view
ITC ≈ 104% of this; bonus depreciation ≈ 156% of this (at 48% down)
ITC carries back up to 3 years before carrying forward up to 20 years — same engine as the standalone Solar view
$5,000 per GPU unit (half or full). Type a different amount to override.
Requires at least $1,000,000 of ordinary business/pass-through income entered above.
Minimum $100,000. Fee is a % of the offset generated, charged on top of the contribution.
Default: 7.5% of the $800,000 offset generated = $60,000
Requires at least $1,000,000 of long-term capital gains entered above.
Minimum $100,000. Fee is a % of the offset generated, charged on top of the contribution.
Default: 5% of the $1,000,000 offset generated = $50,000
Requires ordinary active business income entered above (not applicable to W-2 wages or LTCG).
Minimum 3 packets ($50,000 total cash: ≈75% down payment + ≈25% upfront finance fee). §179 deduction = package value + finance fee (≈1:6.25 leverage on total cash), limited by business income and the federal cap.
Strategy Breakdown
☀️ Solar Strategy Parameters
How solar credits work: Your cash contribution funds 45% of the system's value (the rest is typically financed — informational only, not part of your required cash outlay). The system generates an Investment Tax Credit equal to 50% of system value (≈111% of your equity) and bonus depreciation equal to 75% of system value (≈166% of your equity). In each year applied (current year, then carried back 3 years, 2 years, 1 year, then forward up to 20 years), the ITC can offset 100% of the first $25,000 of that year's federal tax liability (or AMT, if higher), plus 75% of any liability above $25,000 — net of any other Subpart A & B credits already using that same room. Any unused ITC carries forward.
48% down: $100,000 contribution → ≈$208,333 system value
Minimum $100,000 — System Value, ITC, and bonus depreciation scale proportionally
SYSTEM VALUE
$0
LOAN AMOUNT
$0
Loan is informational only and is not included in your required cash outlay.
Tentative minimum tax this year, if any — the ITC's $25k+75% room is measured against whichever of your regular tax or AMT is higher
Other general business credits claimed this year that share the same annual limitation room, reducing what's left for the ITC
Under IRC §39(a)(4) (as amended by the IRA), unused ITC credits can be carried back 1, 2, or 3 years to recover prior taxes paid. No amendment of the prior-year returns is required — the refund is claimed on Form 1045 (Application for Tentative Refund), filed after the current-year return is accepted. Enter the federal tax, AMT (if any), and any other Subpart A & B credits already claimed in each of the last three years. Leave blank or $0 if not applicable.
Year −3 (carryback applied 3rd)
Year −2 (carryback applied 2nd)
Year −1 (carryback applied 1st after current year)
ITC CREDIT APPLICATION ORDER
1st Current year federal tax (or AMT if higher), net of other Subpart A & B credits
2nd Year −3 (Form 1045, filed after current-year return is accepted)
3rd Year −2 (Form 1045, filed after current-year return is accepted)
4th Year −1 (Form 1045, filed after current-year return is accepted)
5th+ Future years (up to 20 yrs)
☀️ SOLAR BENEFIT PREVIEW — YEAR 1
ITC CREDIT (111% of equity)
$0
BONUS DEPR. DEDUCTION
$0
TOTAL YEAR-1 BENEFIT
$0
ITC = dollar-for-dollar tax credit • Depreciation cash value at selected marginal rate
☀️ Solar Strategy 2 Parameters — Dynamic System Pricing
How this variant works: Enter the Dynamic System Price (the appraised value of the full system) and the Dynamic System Funding Amount (the total funding for the full system). Internally, an ITC value equal to 50% of the System Price is used only to size the deduction: total bonus depreciation = System Price − 50% of that ITC value. Your User Strategy Cost (min $50,000) is what you're actually putting in — you're allocated a proportional share of the total bonus depreciation equal to your Strategy Cost ÷ the Funding Amount. No ITC credit is passed to the client under this strategy — your benefit comes entirely from your allocated share of the bonus depreciation deduction.
Appraised value of the full system — drives total bonus depreciation (no ITC passed to client)
Total funding for the full system — your allocation is your Strategy Cost ÷ this amount
Minimum $25,000 — your actual contribution; determines your proportional share of the deduction
This strategy has no ITC, so there is no ITC carryback. These fields are used only when your current-year income is $0 — they help estimate your Year-2 federal benefit if the bonus depreciation deduction carries forward. Leave blank or $0 if not applicable.
Used to estimate next-year taxable income if needed
Used to estimate next-year taxable income if needed
Used to estimate next-year taxable income if needed
NO ITC CREDIT
Under Solar Strategy 2, the client receives bonus depreciation only. No ITC credit is applied, carried back, or carried forward.
☀️ SOLAR STRATEGY 2 BENEFIT PREVIEW — YEAR 1
TOTAL SYSTEM PRICE (basis only — no ITC to client)
$0
BONUS DEPR. FACTOR (% of Funding Amount)
0%
YOUR ALLOCATED BONUS DEPR.
$0
TOTAL YEAR-1 BENEFIT
$0
No ITC credit under this strategy • Depreciation cash value shown at selected marginal rate
🏛️ Structured Ownership Parameters
🚫
Strategy requires min $1M ordinary active business income or $1M long-term capital gains
Enter Business/Pass-Through Income or Long-Term Capital Gains above that meets one of these thresholds to unlock this strategy.
How this works: Structured Ownership can potentially generate substantial year-one tax offsets against ordinary income or long-term capital gains using a Series LLC structure. The client contributes a small percentage of their target offset amount into a newly formed Cell Series LLC, which the client owns 99.9%, while a Master LLC manages the underlying trading operations. High-volume active trading produces active expenses under IRC rules, with allocations permitted under §704(b) and Delaware Series law, creating approximately an 8x offset for ordinary income or 10x for long-term capital gains. A 16-year promissory note supports the trading activity and establishes a Deficit Restoration Obligation (DRO) — this is what makes the offset a deferral (due again in 16 years), not a permanent reduction — with flexibility for a portion of the contribution to be directed to a client-managed account, which carries its own 4%/year ongoing fee.
✅ Your entries qualify for both variants — pick one to model here, or check Stack Multiple Strategies to run both Ordinary and LTCG Structured Ownership side by side.
Requires at least $1,000,000 of ordinary business/pass-through income. Not eligible for W-2 wages, Qualified Plan distributions, or Passive Income — only ordinary business/pass-through income or long-term capital gains qualify.
Minimum $100,000 client contribution for either variant. Fee is a % of the offset amount generated, charged on top of the contribution.
Default: 7.5% of the $800,000 offset generated = $60,000
🏛️ STRUCTURED OWNERSHIP BREAKDOWN
FEE
$0
GOES INTO STRATEGY
$0
SEPARATELY-MANAGED ACCOUNT
$0
INCOME OFFSET GENERATED (1:8)
$0
Fee and separately-managed account each scale proportionally with your contribution, using the ratios from the example above
💻 AI & CRM Technology Package (§179) Parameters
🚫
This strategy requires ordinary active business income
Not applicable against W-2 wages or long-term capital gains — enter Business/Pass-Through Income above to unlock this strategy.
How this works: A business-use technology package — a CRM plus a private, HIPAA-compliant AI usable across a range of business functions — where ownership and license rights transfer to the buyer at closing, purchased in whole "packets" (minimum 3). Each packet carries a $100,000 packaged value; the buyer's cash outlay per packet (≈$16,667) splits into a cash down payment (≈75%) applied toward the package and an upfront finance fee (≈25%) for arranging the seller-financed note that covers the rest — a separate rewards program lets the buyer earn points toward statement credits against billed interest and scheduled principal, helping offset the note's ongoing cost. The transaction structure is modeled as supporting a Section 179 business-expense deduction equal to the full packaged value, plus the upfront finance fee itself (also a deductible business financing cost) — roughly 1:6.25 leverage on the total cash outlay. Unlike bonus depreciation, §179 is capped by the taxpayer's business taxable income and can't create or increase a business loss; unused amounts carry forward indefinitely rather than being lost.
Minimum 3 packets ($50,000 total cash). Deduction limited to your entered business income and the federal §179 cap.
Many states impose their own, lower §179 dollar cap rather than following the federal limit — verify your state's actual cap with a CPA; a representative low cap is used here for illustration when "Does Not Conform" is selected.
💻 TECHNOLOGY PACKAGE BREAKDOWN
TOTAL CASH REQUIRED
$50,000
↳ CASH DOWN PAYMENT (≈75%)
$37,615
↳ UPFRONT FINANCE FEE (≈25%)
$12,385
§179 DEDUCTION GENERATED (PACKAGE + FINANCE FEE)
$312,385
FEDERAL §179 CAP (AFTER PHASE-OUT)
$2,560,000
USABLE THIS YEAR (LIMITED BY BUSINESS INCOME)
$0
2026 federal §179 limits: $2,560,000 max, phase-out starting at $4,090,000 of qualifying property (Rev. Proc. 2025-32 / OBBBA) — verify current-year figures with a CPA
Saved in this browser only — no data is transmitted
Modeled Output — Educational Only
Your side-by-side comparison
All figures are estimates based solely on the inputs you provided. Actual tax results depend on your complete financial picture and qualified professional review.
Scenario A — No Strategy
This is the baseline — your estimated tax if no additional deductions are applied. For many high earners, this represents tens of thousands in avoidable tax burden.
$0
Estimated federal + state tax
Scenario B — With Strategy
Estimated tax after the modeled deduction is applied. The difference vs Scenario A (minus your implementation cost) is your estimated net benefit.
$0
Estimated federal + state tax
Est. Difference After Cost (Yr 1)
$0
Tax reduction minus your implementation cost — what you actually keep
Year 1 Tax Difference
$0
Estimated tax reduction before strategy cost
Net Benefit Ratio
0%
Net benefit ÷ implementation cost (Year 1)
Total Benefit (incl. state carry)
$0
Year 1 net + estimated state carryforward benefit
Scenario A Tax Paid
$0
Your baseline — what you pay without any strategy
Carryforward Deduction
$0
Unused deduction carried to future years (if capped)
State Carryforward Benefit
$0
Est. Years 2-5 state tax benefit (non-conforming states)
Hyp. 5-Year Value @ 8%
$0
If Year 1 net benefit were reinvested — illustrative only
Visual Comparison
Scenario A tax burden
$0
Strategy cost (inv. + fee)
$0
Est. difference after cost
$0
Total benefit (incl. state)
$0
📈 Hypothetical Future Value Illustration
If the Year 1 net difference were reinvested at 8% annually for 5 years — for illustration only. Not a prediction or guarantee.
Year 1 difference
$0
After 5 yrs @ 8%
$0
Line Item
Scenario A (No Strategy)
Scenario B (With Strategy)
Taxable Income (est.) (incl. LTCG)
$0
$0
Federal Tax (incl. LTCG + NIIT)
$0
$0
Effective Federal Rate (on that scenario’s own taxable income)
0%
0%
State Tax (incl. LTCG)
$0
$0
Effective State Rate (on that scenario’s own taxable income)
0%
0%
↳
Total Tax
$0
$0
Est. Tax Difference (Year 1)
$0
Strategy + Implementation Cost
$0
Fee
$0
Income Offset Generated (leverage)
$0
Usable This Year (capped by actual income)
$0
Separately-Managed Account (client-controlled)
$0
Deduction Limit Applied
$0
Charitable Floor Disallowed (0.5% of AGI)
$0
60% AGI Cap — Gift Deferred to Future Years
$0
Top-Bracket Limitation (37% → 35% benefit cap)
$0
W-2 Bonus Depreciation Limit — Deferred
$0
Bonus Depr. Tax Saving — Federal (Current Year)
$0
Bonus Depr. Tax Saving — State (Current Year)
$0
Bonus Depr. Tax Saving — State Carry (Yrs 2-5)
$0
Carryforward Deduction (est.)
$0
State Carryforward (80% over 4 yrs)
$0
State Carryforward Tax Benefit (Yrs 2-5)
$0
ITC Carry Forward (up to 20 yrs)
$0
Est. Difference After Cost (Yr 1)
$0
Net Benefit Ratio (Year 1)(same as Simple / Simplest; this year only)
0%
Total Benefit (incl. State Carry)
$0
Overall Net Benefit Ratio(incl. later-year carryforwards)
0%
State Tax Calculation — Step by Step
✓ Conforming State — Full deduction applies
STATE TAX (SCENARIO A)
Taxable Income on 2026 state brackets
$0
STATE TAX (SCENARIO B)
(Taxable Income − Full Deduction) on 2026 state brackets
$0
State Tax Saving$0
⚠ State-Specific Restriction
Credit base$0
× Credit rate0%
State credit$0
STATE TAX (SCENARIO A)
$0
STATE TAX (SCENARIO B)
$0
State Tax Saving$0
⚠ Non-Conforming State — Limited Year 1 deduction
BONUS DEPR. AMOUNT
Contribution × 5
$0
STATE ALLOWS (YR 1)
Deduction × 20%
$0
STATE RATE
Applied to 20% allowed
0%
YEAR 1 STATE TAX CALCULATION
State tax before (Scenario A)$0
Year 1 State Saving = Deduction × 20% × State Rate$0
This is a deferral strategy, not an elimination strategy. The tax reduced this year becomes due again in 16 years. Treat the figures below as "tax paid later" rather than "tax avoided" — the benefit is the time value of that 16-year interest-free use of the deferred amount, plus whatever the separately-managed account grows to (net of its own 4%/year fee).
Scenario A — No Strategy
Estimated tax this year with no additional offset applied.
$0
Estimated total tax (federal + state) this year
Scenario B — With Structured Ownership
Estimated tax this year after the offset — the difference is deferred, not eliminated.
$0
Estimated total tax (federal + state) this year
Tax Deferred This Year
$0
Scenario A tax minus Scenario B tax — due again in 16 years, not saved permanently
What the deferred tax could grow to if invested at 8%/yr for 16 years, minus the amount that comes due then
Managed Account After 16 Years
$0
Separately-managed account grown at 8%/yr, net of its own 4%/yr fee
Line-by-Line Detail
☀️ Solar Ownership — Summary
What you put in. What you get back. When.
Based on your inputs. Educational illustration only — verify with your CPA.
YOUR EQUITY CONTRIBUTION
Amount you put into the solar partnership
$0
📅 YEAR 1 — WHEN YOU FILE YOUR TAXES NEXT YEAR
ITC Credit — Applied to This Year's Federal Tax
Dollar-for-dollar reduction of your federal tax bill
$0
ITC Carryback — Refund from Prior Year Returns
Form 1045 recovers previously paid federal tax — no amendment needed
$0
Bonus Depreciation — Federal Tax Saving (This Year)
Deduction reduces your taxable income this year
$0
Bonus Depreciation — State Tax Saving (This Year)
State deduction based on conformity
$0
Total Year 1 Tax Benefit
$0
📅 NEXT TAX YEAR — BONUS DEPRECIATION CARRY-FORWARD
Bonus Depreciation Carry-Forward — Federal Tax Saving
Applied to next year's federal tax through the 2026 marginal brackets
$0
State Bonus Depreciation — Carry-Forward Benefit
Remaining 80% recognized over next 4 years (non-conforming state)
$0
Total Year 2+ Benefit
$0
📅 FUTURE YEARS — ITC CARRY FORWARD (UP TO 20 YRS)
Remaining ITC — Applied to Future Federal Tax
Credits carry forward until fully absorbed (dollar-for-dollar)
$0
💰 OVERALL NET BENEFIT SUMMARY
Your equity contribution + $500 setup fee & LLC registration−$0
Year 1 total tax benefit+$0
Year 2+ carry-forward benefit+$0
Net Benefit on Your $0 Contribution
Net benefit ratio
$0
total estimated benefit
Educational illustration only. Actual results depend on your complete tax situation. Consult your CPA.
☀️ Solar Ownership Strategy 2 — Summary
What you put in. What you get back. When.
Bonus depreciation only — no ITC credit under this strategy. Based on your inputs. Educational illustration only — verify with your CPA.
YOUR STRATEGY COST
Amount you put into the solar partnership
$0
📅 YEAR 1 — WHEN YOU FILE YOUR TAXES NEXT YEAR
Bonus Depreciation — Federal Tax Saving (This Year)
Deduction reduces your taxable income this year
$0
Bonus Depreciation — State Tax Saving (This Year)
State deduction based on conformity
$0
Total Year 1 Tax Benefit
$0
📅 NEXT TAX YEAR — BONUS DEPRECIATION CARRY-FORWARD
Bonus Depreciation Carry-Forward — Federal Tax Saving
Applied to next year's federal tax through the 2026 marginal brackets
$0
State Bonus Depreciation — Carry-Forward Benefit
Remaining 80% recognized over next 4 years (non-conforming state)
$0
Total Year 2+ Benefit
$0
💰 OVERALL NET BENEFIT SUMMARY
Your strategy cost−$0
Year 1 total tax benefit+$0
Year 2+ carry-forward benefit+$0
Net Benefit on Your $0 Contribution
Net benefit ratio
$0
total estimated benefit
Educational illustration only. Actual results depend on your complete tax situation. Consult your CPA.
Strategy — Summary
What you put in. What you get back. When.
Based on your inputs. Educational illustration only — verify with your CPA.
YOUR CONTRIBUTION
Total amount you put into the strategy
$0
📅 YEAR 1 — WHEN YOU FILE YOUR TAXES NEXT YEAR
Total Year 1 Tax Benefit
$0
📅 FUTURE YEARS
Carried Forward — Applied to Future Years
Unused amount rolls forward
$0
🔒 OVERALL NET BENEFIT SUMMARY
Your contribution-$0
Year 1 total tax benefit+$0
+ Managed account (returned to you)+$0
Year 1 Net Benefit on Your Cost
— Year 1 net benefit ratio on your cost
$0
Carry Forward Benefit
Additional tax benefit expected in future years
$0
Overall Net Benefit on Your Cost
— overall net benefit ratio on your cost
$0
Educational illustration only. Actual results depend on your complete tax situation. Consult your CPA.
Background
How this strategy works in the tax code
Bonus depreciation under IRC §168 lets qualifying assets be deducted largely in the first year instead of over many years. State rules differ, and eligibility depends on your facts. This page explains the mechanics; it is not a recommendation.
📋 Things to know
Combined federal and state rates for high earners can be significant, and common deductions such as 401(k), HSA and mortgage interest have annual limits
Many tax provisions have deadlines; for example, assets generally must be placed in service by December 31 to count for that tax year
Every strategy has costs, risks, paperwork and eligibility rules that matter as much as its estimated tax effect
Tax results depend on your complete situation; only your CPA or tax professional can say what applies to you
🔍 What this calculator models
Bonus depreciation under IRC §168 can allow qualifying assets to be expensed in Year 1 rather than spread across years
You can model different amounts and see the estimated tax difference after cost
In non-conforming states, deductions not recognized this year are modeled as carrying forward over later years
All figures are estimates for education only and are not a prediction of your actual tax result
How the Model Works
Inside the calculation
This is a simplified educational model. Here's what happens under the hood when you enter your inputs.
1
Income Input
Gross income minus standard deduction and contributions = taxable income
2
Scenario A Tax
Federal brackets applied. 2026 state brackets applied. Total = your baseline tax.
3
Depreciation Applied
Contribution × factor = gross deduction. Cap applied if W-2 income. Taxable income reduced.
4
Scenario B Tax
Same brackets applied to lower taxable income. State conformity modeled. New total calculated.
5
Net Benefit
A minus B = gross difference. Minus implementation cost = your estimated net benefit.
Questions for your CPA
These are estimates, not advice.
This calculator gives you a directional estimate so you can go into a professional conversation with context. A qualified CPA or tax advisor will look at your full picture and tell you what's actually applicable.
Does my income type qualify, and which limits apply to me?
What asset, holding-period and documentation rules apply?
What timing rules apply for this tax year?
How does my state treat this deduction or credit?
What records are needed if the IRS asks questions?
Your Calculation Summary
Scenario A Tax (est.)
$0
Scenario B Tax (est.)
$0
Est. Difference After Cost
$0
Total (incl. state carry)
$0
Hypothetical 5-yr @ 8%
$0
Educational illustration only. Not tax advice.
Important Disclosures & Assumptions
This calculator is provided for educational and illustrative purposes only. Figures are estimates based solely on the inputs provided and simplified modeling assumptions. Actual tax results will vary and depend on complete financial data, final tax return preparation, and applicable law. This material does not constitute tax, legal, accounting, investment, financial, or securities advice. No securities are offered or sold. Hypothetical projections (including reinvestment assumptions) are not guarantees of future performance. Clients must consult their CPA, tax advisor, or licensed professional prior to implementing any strategy. Federal bonus depreciation references relate generally to IRC §168. The current-year W-2 deduction limit ($512,000 Married Filing Jointly / $256,000 Single and other statuses) is modeled as a flat dollar cap; confirm the applicable limit and its statutory basis with your CPA. State conformity is modeled for illustration based on 2026 research (OBBBA reactions). Oregon and New Mexico newly decoupled Apr 2026. Tennessee follows TCJA not OBBBA. Rates and conformity status updated April 2026. Verify current status with your CPA as state laws change frequently. Tax laws are subject to change. This document is not intended for audit defense or formal tax opinion reliance. One Aspire LLC provides financial education about tax strategies and alternative investments only. One Aspire LLC is not a registered broker-dealer, investment adviser, certified public accountant, enrolled agent, tax preparer or law firm, and it does not hold any securities, insurance, tax, accounting or legal license.
Federal Tax: Applied using 2026 marginal brackets by filing status (IRS Rev. Proc. 2025-32). Standard deduction subtracted from gross income. Traditional contributions also reduce taxable income. All federal tax savings are computed as the difference between two full bracket runs — tax on income before the deduction minus tax on income after it. No effective-rate shortcut is used anywhere, because deductions come off the top brackets first and an effective rate would understate the benefit.
Charitable Contributions (2026 OBBBA rules): Three limits are modeled in sequence. (1) 0.5% AGI floor — only gifts exceeding 0.5% of AGI produce any itemized deduction; the disallowed slice is permanently lost and does not carry forward. (2) 60% AGI ceiling — cash gifts to public charities are deductible up to 60% of AGI; the excess carries forward up to five years. This ceiling applies identically to W-2 and business income. (3) Top-bracket limitation — for taxpayers in the 37% bracket the benefit of itemized deductions is capped at 35 cents per dollar. Mechanically, itemized deductions are reduced by 2/37 of the lesser of total itemized deductions or the amount by which income exceeds the 37% bracket threshold. The gross deduction is the entered amount multiplied by the selected factor, and the three limits above are then applied to that gross figure in order.
Bonus Depreciation Income Limits: For W-2 / salary income, current-year bonus depreciation is limited to $512,000 for Married Filing Jointly and $256,000 for Single and all other filing statuses. Amounts above the limit are not lost — they carry forward to future years. For business / pass-through income, no annual cap is applied. Enter W-2 and business income separately in the Your Situation panel; the calculator automatically applies the uncapped business allowance plus the filing-status W-2 cap on top, and this drives all bonus depreciation strategies including both solar strategies. No percentage-of-AGI cap applies to bonus depreciation — the 60% of AGI ceiling is a charitable contribution rule only.
State Conformity Lists: The ⓘ icons beside the conformity selector and the charitable panel open reference lists compiled in August 2026 from Bloomberg Tax conformity charts, COST OBBBA conformity maps, and state revenue department guidance. Conformity changes with nearly every legislative session and is sometimes applied retroactively — confirm your state's current-year position with your CPA before filing.
Deduction Carry-Forward: Deduction dollars exceeding current-year taxable income are not lost — they carry forward. Their federal value is estimated by running the same 2026 brackets against next year's taxable income (current income assumed to repeat), not by applying an average rate.
State Tax (Updated 2026): Graduated 2026 state brackets per state and filing status (Tax Foundation, State Individual Income Tax Rates and Brackets, 2026); long-term capital gains are taxed by the state as ordinary income stacked on top of other income (Washington: 7% capital-gains tax above $278,000, 9% above $1M). Carry-forward estimates use the marginal state rate. Conforming states apply the full federal deduction (§168k) for state purposes. Non-conforming states: Year 1 state tax saving = State Rate × 20% of bonus depreciation deduction. State tax owed (Year 1) = State Tax Before − Year 1 State Saving. Carry-forward benefit = remaining deduction dollars (80% of the deduction, plus any Year 1 slice this year's income could not absorb) × State Rate. Note: this is applied to deduction dollars, not to the federal tax benefit — multiplying a tax amount by a tax rate would understate the figure by roughly the marginal rate. 2026 Changes: Oregon (SB 1507, signed Apr 9 2026) and New Mexico (SB 151, signed Mar 11 2026) newly decoupled. Michigan, DC, Maine also decoupled. Tennessee follows TCJA rates (40%/20%/0%), not OBBBA 100%. California, New York, New Jersey, Illinois, Connecticut, Maryland, Massachusetts, Pennsylvania, Vermont remain long-standing decouplers. Virginia, Indiana, North Carolina, Ohio, Kentucky, Georgia, Arizona, Arkansas updated to reflect current conformity. Rates updated to 2025–2026 per state tax agency guidance.
Depreciation Model: Gross deduction = contribution amount × selected factor (1–10, default 5). This reflects a simplified leveraged bonus depreciation structure — adjust the factor to match your specific program. For W-2 income the current-year deduction is limited to $512,000 (Married Filing Jointly) or $256,000 (Single and other statuses), with the remainder carried forward.
Net Benefit: (Scenario A Tax) − (Scenario B Tax) − (Contribution + Fee) = Year 1 net difference. State carryforward benefit adds estimated future state tax savings for non-conforming states.
5-Year Hypothetical: Year 1 net difference compounded at 8% annually. Purely illustrative — not a prediction of investment returns.
This model is simplified and educational. Consult a qualified tax professional for real-world guidance.
Review Checklist
Step 1 — Confirm Eligibility: Verify with your CPA that your income type and situation qualifies for bonus depreciation. W-2 earners face a current-year deduction limit ($512,000 Married Filing Jointly / $256,000 Single and other statuses); business/pass-through income has no annual cap.
Step 2 — Asset Documentation: Collect purchase records, cost basis, and any required cost segregation or equipment reports. Documentation is essential for audit readiness.
Step 3 — Filing Alignment: Coordinate with your CPA before year-end. Assets must typically be placed in service by December 31 for the deduction to apply in that tax year.
Step 4 — State Treatment: Ask your CPA about your specific state's conformity. Non-conforming states may require a different state filing approach.
Step 5 — Recordkeeping: Records are commonly kept for at least 7 years. Bonus depreciation claims can draw IRS scrutiny.
This checklist is general and should be reviewed with a qualified tax professional before acting.
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State Conformity
Tax Strategy Illustration
Strategy · Tax Year 2026
Client
Client / Scenario
Client Name—
State—
Filing Status—
Strategy—
Report Date—
Income Inputs
Net Business Ordinary Income$0
Non-Business Ordinary Income$0
Long-Term Capital Gains$0
Total Income$0
Pre-Tax Retirement / HSA Contributions$0
Adjusted Gross Income (AGI)$0
Strategy Inputs
Required Cash Outlay
Total Cash Outlay$0
System & Financing
System Value$0
Loan Amount$0
Loan is informational only and is not included in required cash outlay.
Managed Accounts
Account Initial Value$0
Total Contributed for Client$0
Because this amount is returned to the client (it funds a separately-managed account they control), it's excluded from Total Strategy Charges below.
Deduction Generated
$0
Ordinary Taxable Income$0
LTCG$0
Total$0
Adjusted Gross Income (AGI) After Strategy$0
The LLC expense lowers AGI; the charitable gift itself is an itemized deduction, which lowers taxable income, not AGI.
Federal Tax Credits (ITC)
Total Credits Generated$0
Used in Current Year$0
Total Carry-Back Credits$0
ITC Left to Use (Carry Forward, up to 20 Yrs)$0
Cash Benefit from Carry-Back Credits$0
Taxes: Before vs After (Current Year)
Category
Baseline
After Strategy
Current-Year Tax Savings
Federal
$0
$0
$0
State
$0
$0
$0
Total
$0
$0
$0
+ Solar ITC applied to prior 3 years' federal tax (carry-back refund, Form 1045)
$0
Total Year-1 Tax Benefit
$0
GROSS BENEFIT
$0
TOTAL STRATEGY CHARGES
$0
NET TAX BENEFIT
$0
NET BENEFIT RATIO
0%
ITC LEFT TO USE
$0
BONUS DEPRECIATION CARRY FORWARD
$0
CARRY-FORWARD BENEFIT — NEXT YEAR
$0
2-YEAR NET BENEFIT
$0
2-YEAR BENEFIT %
0%
Savings Implications
Managed Accounts
Account Initial Value$0
Annual fee: —
Projected Value$0
Assumed Annual Growth Rate10%
Investment Horizon30 years
Net Tax Benefit$0
Compounded @ 10% for 30 Years$0
These numbers are hypothetical only and are not financial advice, nor is this a general solicitation of any form of security. While this pro forma considers applicable federal and state tax rates, these numbers may not exactly represent your tax liability and results may vary. Complex state conformity rules for certain strategies may not be fully reflected. Educational illustration only — not tax advice. Consult your CPA or tax advisor before implementing any strategy.
One Aspire · Tax Strategy Impact Calculator
New Calculation
Select a strategy and enter client data. Results update live.
Strategy
No clue which solution works better? No guesswork: use the Optimizer. Easy peasy lemon squeezy! 🍋
Enter income below first. The Optimizer is the same comparison as Simple mode.
Or choose strategies yourself
Pick one strategy, or tap several to stack them together.
Sizes every picked strategy as large as it can go together, with no federal deduction or credit left over for next year. With Solar, it first sizes Solar to the credit your last 3 years of federal tax can take back, then fits the others around it.
Client Inputs
Total Income$0
Mortgage interest on a primary/second home. Leave state & local taxes blank to estimate them from state income tax; the 2026 SALT cap is applied automatically.
401(k), HSA, Traditional IRA. Reduces taxable income.
🎁 Charitable Inputs
Minimum contribution $25,000. Min sets the gift to $25,000; Max uses the largest gift that is fully deductible this year (60% of AGI).
🏛️ Structured Ownership Inputs
Requires $1M+ of business income (or $1M+ of capital gains). Tax is deferred, not eliminated.
🏠 Tiny Homes Inputs
Units (pick any mix)
$5,000 fee per unit. Min and Max pick the unit mix for you; Reset sets every unit to 0 so you can enter your own quantities.
💻 AI & CRM Technology (§179) Inputs
Business Technology Package. Business income only.
☀️ Solar Inputs
⌄
Prior year taxesFor credit carry-back
When Solar is stacked with other strategies, the AMT and Subpart A & B credit fields aren't used. In a stack, Max sizes Solar so its credit is fully used: this year's remaining federal tax plus the 2023–2025 federal tax entered below.
🖥️ GPU Compute Inputs
GPU units (pick any mix)
1 GPU · fee $5,000.
🔋 Battery Storage Inputs (Experior view only)
Max picks the most units whose 40% credit fits this year's federal tax plus 2023–2025.
Prior year federal tax (for the credit carry-back)
The client pays $2,500 per unit plus a $3,000 setup cost up front. The rest of the 40% credit amount is paid to the provider later, out of the credits; it isn't counted as a cost.