Modified Accelerated Cost Recovery System

Modified Accelerated Cost Recovery System

About Modified Accelerated Cost Recovery System:

The Modified Accelerated Cost Recovery System (MACRS) was a method of depreciation introduced by the Tax Reform Act of 1986. Assets are depreciated over longer lives than those provided by the accelerated cost recovery system. Personal property can be depreciated using the declining-balance method. Real property can be depreciated only under the straight-line method. MACRS also provides different conventions for calculating depreciation, determined by when assets were placed in service. IRC (check if this IRC provision is current here) §§167 and 168.

See also other Tax Terms and Definitions in U.S.A.

alternative depreciation system; general depreciation system.

See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of Law.

Description and Definition of Modified Accelerated Cost Recovery System (MACRS)

The depreciation method used since 1986 for deducting the value of depreciable property other than real estate. MACRS depreciation is faster than straight-line depreciation. MACRS depreciation is less favorable than the prior ACRS system.

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