Deductions & credits
You will have a dollar amount for your computer in 2024 and it will finish fully depreciating in 2026. The convention of MQ means mid-quarter and it was used because your computer was purchased in the last quarter of the year and placed in service for business use. You chose to expense $1.193 as a Section 179 deduction in the first year so the remainder is depreciated using the information and the chart below.
TurboTax will calculate the appropriate depreciation based on the information in your tax return or what you enter into your tax return and should be the figures you show. ($2,386 - $1,193 = $1,193 balance to be depreciated).
- 2021 Year 1: half of the last quarter
- 2022 Year 2: full year
- 2023 Year 3: full year
- 2024 Year 4: full year = $163 depreciation expense for the computer.
- 2025 Year 5: full year
- 2026 Year 6: first three quarters (completes the full five years recovery period)
- IRS Publication 946 - The Mid-Quarter chart is at the end with many charts
