The computer you develop on gets amortized, typically over 3 years. It's much more complicated than you realize. It's tied to the useful life of the thing.
What changed is that almost all software development was classified as capital improvements and a forced 5y (15y if international salary). There is not way to classify different software projects by their useful lifespan.
Section 174 was updated this way yes - which is why we’re talking about it yes?
Previously it was classifiable as an R&D expense, and could be written off the same year it was taken. Which is much friendlier, cashflow wise.
Anyone manually depreciating computers over 3 years either already has a lot of capital expenses (> 1 million/yr), or should probably get a better accountant.
There are situations it needs to be more complicated - but for the vast majority of the situations anyone reading this is going to be in, it isn’t. And if they are in that situation, they should hire a professional to help them untangle it.
What changed is that almost all software development was classified as capital improvements and a forced 5y (15y if international salary). There is not way to classify different software projects by their useful lifespan.