Question

I use my personal computer and computer equipment for business. Is there a depreciation schedule for computers and computer equipment?

Answer

Computers and computer equipment are considered listed property. If you used the computer for more than 50% business use, you can either:

  • Use the modified accelerated cost recovery system (MACRS) method of depreciation to calculate the depreciation schedule for computers and computer equipment using a five-year class life.
  • For the depreciation schedule for computers and computer equipment depreciation, you may claim a deduction under Section 179.

If the business use of the computer or equipment is 50% or less, you can’t take a Section 179 deduction or MACRS. Use the alternate depreciation system instead. This is the straight-line method. It has a five-year class life.

You must document the use of any listed property that you use for more than one purpose in the year.

 

Related Topics

Related Resources

How Does Changing Jobs Affect Your Tax Return?

Changing jobs can come with tax implications like job search and moving expense deductions. Learn more about these potential benefits at H&R Block.

Taxes Get Personal: What’s Your Filing Status?

Do you know what your tax filing status is? Learn how to determine and check your tax filing status with H&R Block.

What Is Head of Household and Who Can Claim It?

Head of household is a filing status for single or unmarried taxpayers who have maintained a home for a qualifying person, such as a child or relative. This filing status provides a larger standard deduction and more generous tax rates for calculating federal income tax than the Single filing status.

Is Your Engagement Ring Purchase Tax Deductible?

Unfortunately, the cost of your engagement ring can't be deducted as a write-off on your personal income taxes. H&R Block tax pros explain why.