Asset Depreciation Guide by Category

Different assets have different depreciation rules, useful lives, and tax classifications. Find the right approach for your specific asset type.

Asset Classification & Depreciation Rules

Asset Category	Useful Life	Method	MACRS Class	Examples
Vehicles	5 years	DDB / MACRS	5-Year	Cars, Trucks, Vans
Computers & Electronics	5 years	MACRS / DDB	5-Year	Laptops, Servers, Phones
Office Furniture	7 years	SL / MACRS	7-Year	Desks, Chairs, Cabinets
Machinery & Equipment	5-10 years	UOP / MACRS	5/7-Year	Manufacturing equipment
Residential Buildings	27.5 years	SL (Mid-Month)	27.5-Year	Rental apartments
Commercial Buildings	39 years	SL (Mid-Month)	39-Year	Office, Retail
Intangibles	15 years	SL (Amortization)	Section 197	Patents, Goodwill

Immediate Expense Option

• Assets under $2,500 can be expensed immediately (no depreciation required)
• Threshold increases to $5,000 for businesses with Applicable Financial Statements
• Must have written policy and apply consistently
• Reference: IRS Reg. §1.263(a)-1(f)

IRS Publication 946

Official source for MACRS recovery periods and asset classifications.

Industry Standards

Common practice within your industry for similar assets.

Actual Usage

Your company's specific expected usage patterns and replacement cycles.

Complete guide to vehicle value loss with mileage and condition factors.

Electronics & Computers

Coming Soon

Depreciation rules for laptops, phones, servers, and tech equipment.

Machinery & Equipment

Coming Soon

Manufacturing equipment, tools, and heavy machinery depreciation.

Furniture & Fixtures

Coming Soon

Office furniture, fixtures, and leasehold improvements.

Use our General Calculator to compute depreciation for any asset type.