MACRS
The Modified Accelerated Cost Recovery System (MACRS) is the current tax depreciation system in the United States. Under this system, the capitalized cost (basis) of tangible property is recovered over a specified life by annual deductions for depreciation. The lives are specified broadly in the Internal Revenue Code. The Internal Revenue Service (IRS) publishes detailed tables of lives by classes of assets. The deduction for depreciation is computed under one of two methods (declining balance switching to straight line or straight line) at the election of the taxpayer, with limitations. See IRS Publication 946 for a 120 page guide to MACRS.
Read more about MACRS: History, Depreciable Lives By Class, Depreciation Methods, Special Allowances and Bonus Depreciation, Alternative Depreciation System, Example, MACRS Property Classes Table, MACRS GDS Property Classes Table, MACRS Applicable Percentage For Property Class, MACRS Percentage For Real Property Table, See Also, Sources