Estimate your bonus depreciation tax savings

A free tool that estimates your federal income tax, then shows how buying Bitcoin mining equipment could lower it through 100% bonus depreciation. Enter your filing status, taxable income, and how much you'd invest in miners to see your estimated tax savings and the net, after-tax cost of the hardware.

Bitcoin miners are business equipment. When you place them in service in an active mining business, the IRS lets you deduct the full purchase price in year one through bonus depreciation. That deduction lowers your taxable income, which lowers the federal tax you owe.

A tax provision that lets a business deduct 100% of the cost of qualifying equipment in the year it's placed in service, instead of spreading it over several years. It was restored to 100% permanently for property placed in service after January 19, 2025.

Your savings equal your marginal tax rate times the amount you invest in equipment. For example, a high earner in the 37% bracket who places $85,000 of miners in service could reduce their federal tax bill by roughly $31,450. Use the calculator to estimate your own number.

Post-tax investing means you earn income, pay tax on it, then invest what's left. Pre-tax investing means you use a legal deduction, like a retirement account or a business equipment purchase, to put capital to work before the IRS takes its full cut. Buying deductible mining equipment is a form of pre-tax investing.

To deduct the equipment against your other income, the IRS generally requires that you materially participate in an active mining business and that the machines are placed in service (installed and running) during the tax year you claim the deduction. Whether you qualify depends on your specific situation, so confirm with a CPA.

Yes. Qualifying mining equipment placed in service after January 19, 2025 is eligible for 100% bonus depreciation, meaning the full cost can be deducted in year one, subject to material participation and other requirements.

No. It estimates federal income tax only, using 2025 federal brackets and the standard deduction. It does not include state income tax, self-employment tax, FICA, AMT, or phase-outs, so your actual results will vary.

No. This calculator is for education only and provides estimates, not tax advice. Confirm any strategy with a qualified tax professional before acting.