Is there any option to depreciate computers on a MACRS 200DB 3 Year method instead of the 5 Year?
Computers typically become obsolete within two years of purchase. It would be very desirable to just let them depreciate out after three years and not have to hassle with doing asset sales in the middle of that five year period.
nish
"nish" wrote
3 years? No. Section 179, yes.Shhhhhhh........
Don't tell the 8+ year old computer in the back room that we use every once in a while to prepare a return for 1999 or so.
In fact, don't tell my 4 year old computer that I use on a daily basis either.
It'd be even more desireable to expense them like you do the water bill, but Congress doesn't see it our way.
Who do you sell your obsolete computer to?
If you do sell it, then it does have value, which supports the theory of depreciation over it's useful life.
If you can, take Section 179 on that equipment, if not, then play by the rules set out by Congress.
Why would straight line help?
It might make state taxes earlier too, as I'm not sure if accelerated depreciation is allowed in California.
There are situations where your business use drops below 50% or where you dispose of the property and would have to recapture the difference between the accelerated expense taken, and S-L. And there are situations where, like ideal good businesses, your income rises each year. That means you could benefit from not front loading your depreciation expense.
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