![]() ![]() ![]() So in the end it is just a timing difference of when you get the deduction. However, when you dispose (at $0 sales price) assets that are not fully depreciated, you will incur an ordinary loss in the year of disposal. I'm not familiar with what happens when you donate business use assets, so I will leave that out for someone else to answer. You could also argue declining balance more closely reflects the real-life depreciation of the computers compared to straight-line. The value of MACRS GDS over straight-line is that it allows you to recover the cost much faster (you get more deduction early on). So to answer your first question, no, you cannot use your own lifespan. However, you will depreciate it on a straight line. ADS is another option, but as you might have already seen, the recovery period is the same 5 years. You would normally use MACRS GDS (5 year 200% declining balance) to depreciate. You are right that computers are depreciated over 5 years. Is there more value out of another method of computing depreciation. Question 2: Also, I typically just do straight light depreciation for convenience of computation. I could see how many organizations could prove their property in fact has a shorter lifespan. I assume we can't change the depreciation. We scrub the hard-drives before doing so.) (We typically donate the laptops after 3 years of use to goodwill or a related organization. Could I take the depreciation over 3 years instead of 5 years. Question 1: Can I adjust the lifespan of depreciation property if its useful life is shorter then that specified in the IRS pub? If I have documentation, and prove we no longer use the laptop after 3 years. Plus computers break over time, or just become outdated with the operating system changing every 2-3 years. so I get rid of it after the warranty expires. I dislike holding onto equipment "out of warranty". The maximum warranty dell provides is 3-4 years. My concern is that laptops I purchase don't actually have a useful lifespan of 5 years. I'm getting ready to ramp up a new venture and want to purchase some new laptops for my remote employees and myself.Īccording to IRS publication 945, chapter 4 ( ), "Computers and peripheral equipment" are classified as 5-year property and must be depreciated over that time span using IRS Form 4562. If you face any issues or have any questions, please comment below.I own an IT/software company. Hope this guide helps you to enjoy Stack the States® on your Windows PC or Mac Laptop. Double-click the app icon to open and use the Stack the States® in your favorite Windows PC or Mac. Once the installation is over, you will find the Stack the States® app under the "Apps" menu of Memuplay.In this case, it is "Dan Russell-Pinson". Always make sure you download the official app only by verifying the developer's name. ![]()
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