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posted Feb 16, 2022 11:43:57 AM

What is special depreciation allowance on a laptop used for work?

i bought it 6 years ago but never claimed it. Now it is asking me the "special depreciation allowance deduction' ??

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1 Replies
Expert Alumni
Feb 16, 2022 11:57:22 AM

While you don't have to have brand new property placed in service in your business to claim the special bonus depreciation, it must have been acquired after 9/27/17. A computer is allotted a 5-year life by the IRS. The computer is not eligible for bonus depreciation/

 

Certain qualified property acquired after September 27, 2017.

 

Certain qualified property (defined below) acquired after September 27, 2017, and placed in service before January 1, 2023 (or before January 1, 2024, for certain property with a long production period and for certain aircraft), is eligible for a special depreciation allowance of 100% of the depreciable basis of the property.

Qualified property is:

  • Tangible property depreciated under MACRS with a recovery period of 20 years or less;

  • Computer software-defined in and depreciated under section 167(f)(1).

  • Water utility property (see 25-year property, later); and

  • Qualified film, television, and live theatrical productions, as defined in sections 181(d) and (e).

Form 4562