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Computer Depreciation & Hardware Life Calculator

Calculate depreciation for computers, servers, software, and IT equipment using IRS MACRS 5-year property class with double declining balance method.

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Computer Depreciation — IRS Rules

Under IRS MACRS, computers and peripheral equipment are classified as 5-year property. Businesses use the 200% double declining balance methodwith a half-year convention, switching to straight line when advantageous.

Hardware TypeIRS ClassLifeMethod
Laptops, Desktops, Monitors5-Year5 yrs200% DDB
Servers, Network Switches5-Year5 yrs200% DDB
Software (purchased)3-Year3 yrs200% DDB
Telecom Equipment7-Year7 yrs200% DDB
Printers, Scanners5-Year5 yrs200% DDB

Section 179 Tip for IT Equipment

Most IT hardware qualifies for Section 179 expensing — you can deduct the full cost in Year 1 (up to $1,160,000 in 2023) rather than depreciating over 5 years. Ideal for businesses wanting maximum immediate tax deductions.

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