What Is the Depreciation Rate for a Computer?


Quick Answer

The full cost of a computer purchased for business purposes can be claimed over five years. It can be claimed in the first year, divided with 50 percent claimed the first year or distributed over the five-year period.

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Full Answer

The depreciation rates and limits are spelled out in Internal Revenue Service code section 179. The dollar amount that can be claimed the first year is limited by the IRS. The depreciation period begins the year when the computer is put into service. Beginning in 2014, the allowable deduction has been increased to $500,000 with a cap of $2 million on the full amount that can be claimed.

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