AliciaP1
Expert Alumni

Deductions & credits

Since a computer is a depreciable asset, if you take all the depreciation at once, then don't use it for the whole depreciable life, you will recapture the appropriate amount of depreciation that was unused.  The Section 179 and 100% Special Depreciation Allowance deductions both represent taking all the depreciation at once.  Safe Harbor applies to depreciable items that cost less than $2500.  Safe Harbor allows you to categorize these items as business expenses and not have to book depreciation or worry about the recapture with a depreciable life.

 

If each item you purchased for the computer setup is $2500 or less, you can simply record the expenses and you'll be good to go!

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