Alternative Depreciation System
Certain assets must be depreciated under an alternative depreciation system (ADS), using the ADS life and the straight line method. Generally, this applies to assets used outside the United States. The ADS may be applied at the election of the taxpayer in lieu of regular depreciation. In addition, the ADS must be used for computing depreciation deductions for the Alternative Minimum Tax. ADS lives are the same as regular depreciation lives for a few classes, but are generally somewhat longer than regular lives for most classes.
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