DePIN Equipment Value Estimator
Calculate equipment depreciation and current book value for tax purposes.
Original purchase price (not including installation)
When you bought the equipment
Most miners use MACRS 5-year
Percentage of original cost (typical: 40-80%)
Understanding Equipment Depreciation
Depreciation allows you to deduct the cost of business equipment over several years. For DePIN mining equipment, the IRS classifies it as 5-year property.
Depreciation Methods:
MACRS 5-Year (Modified Accelerated Cost Recovery System)
The standard depreciation method for mining equipment. Spreads deductions over 6 years (5-year property with half-year convention):
- Year 1: 20% deduction
- Year 2: 32% deduction (largest deduction)
- Year 3: 19.2% deduction
- Years 4-5: 11.52% each
- Year 6: 5.76% (half-year)
Section 179 Deduction
Allows immediate deduction of up to $1,160,000 (2024 limit) in the year of purchase. Great for new miners who want maximum first-year deductions. Requires business income to offset.
Bonus Depreciation
Allows 60% first-year deduction in 2024 (phasing down to 0% by 2027). Can be combined with MACRS for remaining balance. Good middle ground between MACRS and Section 179.
What Equipment Qualifies?
- Mining Hotspots: Helium miners, IoTeX devices, Filecoin nodes
- Antennas: External antennas, mounts, cables
- Networking Equipment: Routers, switches dedicated to mining
- Storage: Hard drives and SSDs for storage mining
- Installation Equipment: Mounts, weatherproof enclosures
Important Tax Rules:
- Book Value: Original cost minus accumulated depreciation
- Selling Equipment: Sale price minus book value = taxable gain or deductible loss
- Recapture: Depreciation deductions may be "recaptured" as ordinary income on sale
- Like-Kind Exchanges: No longer allowed for equipment (only real estate)
Disclaimer: This calculator provides estimates for educational purposes. Actual depreciation calculations may be more complex based on your specific situation. Consult a tax professional for personalized advice.