Computers and Technology Equipment Depreciation Calculator
IRS MACRS depreciation calculator for computers, servers, and business technology equipment. 5-year recovery period.
Year 1 Deduction
$20,000
Recovery Period
5 years
Total Depreciation
$100,000
Method
DB/SL
Year
Rate
Deduction
Cumulative
1
20.00%
$20,000
$20,000
2
32.00%
$32,000
$52,000
3
19.20%
$19,200
$71,200
4
11.52%
$11,520
$82,720
5
11.52%
$11,520
$94,240
6
5.76%
$5,760
$100,000
IRS Classification
IRS Asset Class: GDS 5-year (MACRS Asset Class 00.12)
Section 179: EligibleBonus Depreciation: Eligible
Key Tax Facts
Computers removed from listed property in 2018 — no longer requires business-use log
5-year MACRS recovery period under Asset Class 00.12
Section 179 available — most businesses deduct 100% in year 1
Bonus depreciation available for new and used equipment
What This Covers
Desktop and laptop computers
Servers and network equipment
Tablets and smartphones (business)
Printers and copiers
Point of sale systems
Common Questions
Computers and peripherals are 5-year MACRS property. Under the half-year convention: Year 1: 20%, Year 2: 32%, Year 3: 19.2%, Year 4: 11.52%, Year 5: 11.52%, Year 6: 5.76%. Most businesses use Section 179 or bonus depreciation to deduct the full cost in year 1 instead.
Yes, in most cases. Section 179 allows full expensing up to the annual limit ($1,160,000 for 2023). Bonus depreciation (100% through 2022, phasing down after) also allows full first-year deduction. For most small businesses, computers are simply fully deducted in year 1.
Prior to 2018, computers were "listed property" requiring a business-use log. The Tax Cuts and Jobs Act of 2017 removed computers from listed property effective 2018. You no longer need a usage log, but the computer must still be used for business.
Tax disclaimer: This calculator provides estimates based on standard IRS MACRS rules from Publication 946. Your actual depreciation deduction may differ based on business-use percentage, the mid-quarter convention, state tax conformity, bonus depreciation phase-outs, and other factors specific to your situation. Always consult a licensed CPA or tax professional before making tax decisions.