# Book vs tax depreciation for GPUs and servers

Financial statements spread a GPU server over the useful life the company estimates. The tax return uses MACRS, where computers are 5-year property. General information, not tax advice. Talk to your tax advisor about your situation.

## Two schedules for one server

|  | Book (financial statements) | Tax (federal return) |
| --- | --- | --- |
| Who sets the life | The company, as an estimate | The statute: 5 years for computers |
| Method | Usually straight line | 200% declining balance (MACRS) |
| First year | Company policy | Half-year or mid-quarter convention |
| Salvage value | May be estimated and excluded | Not used |
| First-year extras | None | Bonus depreciation, section 179 |
| Where it shows | 10-K and 20-F notes | Form 4562; Schedule M-3 reconciles |

[Publication 946](https://www.irs.gov/publications/p946); [Schedule M-3 instructions](https://www.irs.gov/pub/irs-pdf/i1120sm3.pdf), Part III, line 31. Corporations with $10 million or more of assets reconcile book and tax income on Schedule M-3.

## Useful lives in public filings

The 21 public companies in our [useful-life tracker](https://www.amcompute.com/gpu-depreciation-schedules) state server lives of two to seven years. Six of them:

| Company | Stated life | Filing |
| --- | --- | --- |
| CoreWeave | 6 years | [Form 10-K for 2025](https://www.sec.gov/Archives/edgar/data/1769628/000176962826000104/crwv-20251231.htm) |
| Microsoft | 6 years | [Form 10-K for fiscal 2026](https://www.sec.gov/Archives/edgar/data/789019/000119312526323660/msft-20260630.htm) |
| Alphabet | 6 years | [Form 10-K for 2025](https://www.sec.gov/Archives/edgar/data/1652044/000165204426000018/goog-20251231.htm) |
| Oracle | 6 years | [Form 10-K for fiscal 2026](https://www.sec.gov/Archives/edgar/data/1341439/000119312526277521/orcl-20260531.htm) |
| Meta | 5.5 years | [Form 10-K for 2025](https://www.sec.gov/Archives/edgar/data/1326801/000162828026003942/meta-20251231.htm) |
| Amazon | 5 to 6 years | [Form 10-K for 2025](https://www.sec.gov/Archives/edgar/data/1018724/000101872426000004/amzn-20251231.htm) |

Book lives only. None of them changes the tax recovery period, which the statute sets by class.

## Share of cost recovered

| End of year | Book, 6-year straight line | MACRS 5-year | 100% bonus |
| --- | --- | --- | --- |
| 1 | 16.7% | 20.0% | 100.0% |
| 2 | 33.3% | 52.0% | 100.0% |
| 3 | 50.0% | 71.2% | 100.0% |
| 4 | 66.7% | 82.7% | 100.0% |
| 5 | 83.3% | 94.2% | 100.0% |
| 6 | 100.0% | 100.0% | 100.0% |

Book: straight line, no salvage value, full first year, for illustration. Tax: [Publication 946](https://www.irs.gov/pub/irs-pdf/p946.pdf), Table A-1; the [MACRS calculator](https://managedgpus.com/macrs-depreciation-calculator) runs it for your servers.

## Why the difference matters

For owners, the tax schedule sets the basis. The basis sets the gain when the servers are sold ([depreciation recapture](https://managedgpus.com/guides/accelerated-depreciation/depreciation-recapture)).

For lenders and investors, neither is a market value. A longer book life lowers reported depreciation expense without changing what the hardware is worth. What used servers sell for is a third number: see the [GPU resale value calculator](https://www.amcompute.com/gpu-resale-index/calculator). The tax rules are in [MACRS for computers](https://managedgpus.com/guides/accelerated-depreciation/macrs-computer-equipment) and the other [accelerated depreciation guides](https://managedgpus.com/guides/accelerated-depreciation).

## Planning to buy GPU servers?

- A call with our CTO about what you need
- Ballpark costs and timelines for your budget
- A straight answer if it’s not a fit

Prefer email? [hello@amcompute.com](mailto:hello@amcompute.com)

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Source: https://managedgpus.com/guides/accelerated-depreciation/book-vs-tax-depreciation