What did you pay for your equipment?
This is a critical piece. I have been 3D printing for profit for a little over 2 years now and I will tell you that all of your equipment can be depreciated as office equipment. So lets look specifically at the depreciation schedule for various business-related equipment:
Which Property Class Applies Under GDS?
The following is a list of the nine property classifications under GDS and examples of the types of property included in each class. These property classes are also listed under column (a) in section B, Part III, of Form 4562. For detailed information on property classes, see Appendix B, Table of Class Lives and Recovery Periods, in this publication.
- 3-year property.
- Tractor units for over-the-road use.
- Any race horse over 2 years old when placed in service. (All race horses placed in service after December 31, 2008, and before January 1, 2017, are deemed to be 3-year property, regardless of age.)
- Any other horse (other than a race horse) over 12 years old when placed in service.
- Qualified rent-to-own property (defined later).
- 5-year property.
- Automobiles, taxis, buses, and trucks.
- Computers and peripheral equipment.
- Office machinery (such as typewriters, calculators, and copiers).
- Any property used in research and experimentation.
- Breeding cattle and dairy cattle.
- Appliances, carpets, furniture, etc., used in a residential rental real estate activity.
- Certain geothermal, solar, and wind energy property.
- 7-year property.
- Office furniture and fixtures (such as desks, files, and safes).
- Agricultural machinery and equipment.
- Railroad track.
- Any property that does not have a class life and has not been designated by law as being in any other class.
- Certain motorsports entertainment complex property (defined later) placed in service before January 1, 2017.
- Any natural gas gathering line placed in service after April 11, 2005. See Natural gas gathering line and electric transmission property, later.
- 10-year property.
- Vessels, barges, tugs, and similar water transportation equipment.
- Any single purpose agricultural or horticultural structure.
- Any tree or vine bearing fruits or nuts.
- Qualified small electric meter and qualified smart electric grid system (defined later) placed in service on or after October 3, 2008.
- 15-year property.
- Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges).
- Any retail motor fuels outlet (defined later), such as a convenience store.
- Any municipal wastewater treatment plant.
- Any qualified leasehold improvement property (defined later).
- Any qualified restaurant property (defined later).
- Initial clearing and grading land improvements for gas utility property.
- Electric transmission property (that is section 1245 property) used in the transmission at 69 or more kilovolts of electricity placed in service after April 11, 2005. See Natural gas gathering line and electric transmission property, later.
- Any natural gas distribution line placed in service after April 11, 2005, and before January 1, 2011.
- Any qualified retail improvement property.
- Any telephone distribution plant and comparable equipment used for 2-way exchange of voice and data communications.
- 20-year property.
- Farm buildings (other than single purpose agricultural or horticultural structures).
- Municipal sewers not classified as 25-year property.
- Initial clearing and grading land improvements for electric utility transmission and distribution plants.
25-year property. This class is water utility property, which is either of the following.
- Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property.
- Municipal sewers other than property placed in service under a binding contract in effect at all times since June 9, 1996.
You will notice that mining equipment falls into the 5 year category. That means you can spread the cost over 5 years to offset mining gains. Again your CPA can further explain this.