Asset Specific
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 Type | IRS Class | Life | Method |
|---|---|---|---|
| Laptops, Desktops, Monitors | 5-Year | 5 yrs | 200% DDB |
| Servers, Network Switches | 5-Year | 5 yrs | 200% DDB |
| Software (purchased) | 3-Year | 3 yrs | 200% DDB |
| Telecom Equipment | 7-Year | 7 yrs | 200% DDB |
| Printers, Scanners | 5-Year | 5 yrs | 200% 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.