Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Not applicable
posted Jun 5, 2019 2:16:23 PM

What is a recovery period on form 2106

0 3 10161
3 Replies
Intuit Alumni
Jun 5, 2019 2:16:25 PM

 A recovery period is how long the asset can be expected to last and therefore, it's time period for depreciation.

Cars, computers and office equipment have a 5 year recovery period.

Office Furniture has a 7 year recovery period.

For other assets, please see the link below.

https://www.irs.gov/pub/irs-pdf/p946.pdf 

New Member
Apr 13, 2023 8:27:26 PM

So five years is the answer for every year I file? I don't get it?

Expert Alumni
Apr 14, 2023 6:41:00 AM

No, any time you put a new asset into service it has a life that it is expected to survive.  A new computer is expected to last five years.  If you buy one in 2022 then the recovery period is through 2027.  In 2027 that computer is considered worth zero dollars and the expectation is that you would need to buy another one.  If you buy a new computer every year, though, then you would always be entering that you expect it to last five years.

 

@dragonsoldiergj