You may be able to deduct the acquisition cost of a computer purchased for business use in several ways:

• Under Internal Revenue Code section 179, you can expense the acquisition cost of the computer if the computer qualifies as section 179 property, by electing to recover all or part of the acquisition cost up to a dollar limit and deducting this cost in the year you place the computer in service. You can recover any remaining acquisition cost by deducting the additional first year depreciation in the year you place the computer in service if the computer is qualified property under section 168(k)(2), or by deducting depreciation for the remaining acquisition cost over a 5-year recovery period under section 168.
• The additional first year depreciation deduction percentage is 60% for certain qualified property acquired after September 27, 2017, and placed in service after December 31, 2023, and before January 1, 2025.
• Alternatively, you can deduct depreciation under section 168 for the acquisition cost over a 5-year recovery period beginning with the year you place the computer in service, if, for example, you don't elect to expense any of the acquisition cost under section 179 and the computer isn't eligible for the 100% additional first year depreciation deduction in the year you place the computer in service.
• You can never deduct more than the acquisition cost.

Note: For taxable years beginning in 2024, a taxpayer may expense up to $1,220,000 (the dollar limit) of the cost of the section 179 property placed in service during that taxable year. The $1,220,000 dollar limit amount is reduced by the amount by which the cost of the section 179 property placed in service during the taxable year exceeds $3,050,000.