7-year property · 200% declining balance, half-year
Includes: Breeding and work horses 12 years old or less when placed in service. Watch: A breeding or work horse over 12, a race horse over 2, and any other horse over 12 are 3-year property (ADS 10 or 12); any other horse is 7-year with a 12-year ADS period. A horse is over 2 (or 12) after the day 24 (or 144) months after its birth.
| Line 12 · Section 179 expense | $0.00 |
|---|---|
| Line 14 · Special (bonus) depreciation, 100% | $25,000.00 |
| Line 19 · MACRS, 7-year property | $0.00 |
Basis = cost × business use · bonus = (basis − §179) × bonus rate · each year = (basis − §179 − bonus) × table rate
IRS Pub 946 tables · §179 and bonus per the One Big Beautiful Bill Act · car limits per §280F and the IRS yearly revenue procedure.
Placed in service March 2026, 100% business use, no section 179 or bonus.
| Tax year | Depreciation |
|---|---|
| 2026 | $3,573 |
| 2027 | $6,123 |
| 2028 | $4,373 |
| 2029 | $3,123 |
| 2030 | $2,233 |
| 2031 | $2,230 |
| 2032 | $2,233 |
| 2033 | $1,115 |
Source: Pub 946 Table B-2, asset class 01.221 Any breeding or work horse that is 12 years old or less at the time it is placed in service (class life 10, GDS 7, ADS 10); classes 01.222 to 01.225 for other horses. IRS Publication 946.
insytesBI. (2025). Horses depreciation life. Data: IRS Publication 946, 2025 edition. https://www.insytesbi.com/calculators/depreciation/horses/<a href="https://www.insytesbi.com/calculators/depreciation/horses/">Horses depreciation life</a>Horses are 7-year property under MACRS (the General Depreciation System), depreciated with 200% declining balance, half-year. Under the Alternative Depreciation System the period is 10 years. Source: Pub 946 Table B-2, asset class 01.221 Any breeding or work horse that is 12 years old or less at the time it is placed in service (class life 10, GDS 7, ADS 10); classes 01.222 to 01.225 for other horses.
Section 179 lets you deduct up to $2,560,000 in 2026 (reduced above $4,090,000 of purchases), as long as the business has the income. Bonus depreciation is 100% for property acquired after January 19, 2025, under the One Big Beautiful Bill Act.
With no section 179 or bonus, placed in service in March 2026: $3,573 in 2026, $6,123 in 2027, $4,373 in 2028, $3,123 in 2029, and so on. The calculator above works it out for your own cost, date and business use.
A breeding or work horse over 12, a race horse over 2, and any other horse over 12 are 3-year property (ADS 10 or 12); any other horse is 7-year with a 12-year ADS period. A horse is over 2 (or 12) after the day 24 (or 144) months after its birth.