Effective Life of Computer Equipment

[yewknowit]

CA

If I burn through 1 laptop a year, can I deduct the whole expense of one laptop in 1 year?

[nanomug]

Not enough info. Depends on a lot of factors including use of the laptop. We have a multitude of computer equipment and some is deductible and other aren't. We keep our personal and business computers seperate. That means no personal stuff on the business computers.

[yewknowit]

It's all business on the laptops. I know your generally supposed to depreciate the value of computer equipment, but can I fully depreciate it in 1 year if I replace it in 1 year?

[Snipes5]

According to the IRS, the useful life of a computer is 5 years, so NO, you may not write the entire thing off in one year, unless you keep it in service for 5 years.

Better to depreciate it over five years, but take the 50% bonus depreciation in the first year. You get that *in addition* to the regular 20% that you would get in the first year. This way you get a good bunch of depreciation, but don't have to recapture anything when you take it out of service after one year.

If you write the whole thing off the first year, using section 179, you will have to recapture a portion of it if you don't keep it in service for the full 5 years.

Snipes