What gets depreciated over 7 years?

7-year property under IRS MACRS rules includes office furniture and fixtures, and it also serves as the default class for equipment that doesn't fall into a more specific category, which covers much general-purpose woodworking machinery.

The IRS assigns depreciation periods by asset class rather than by industry, so "woodworking equipment" isn't named as its own category. In practice, items like desks, files, and safes used in a shop office fall squarely into 7-year property, and many general shop and industrial machines default to the 7-year class when no other MACRS category applies. Under the standard half-year convention, 7-year property is typically written off across 8 tax years using IRS percentage tables, not a straight one-seventh per year.

This classification affects tax depreciation schedules, but it is separate from what a piece of equipment is actually worth on the market today. A table saw fully depreciated on paper can still carry real resale or replacement value, and an outdated CNC router still on the books may be worth far less than its remaining basis. Because depreciation schedules and fair market value diverge over time, a professional woodworking equipment appraisal is the reliable way to establish current value for insurance, estate, tax, or lending purposes rather than relying on the depreciation schedule alone.

If you're working through a shop's asset list for tax or valuation purposes, it helps to understand the broader depreciation rate for tools and equipment and to get a sense of what older woodworking tools are actually worth before finalizing any figures.