Recovery Period


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Recovery Period

The period during which a company depreciates an asset. That is, the recovery period is that during which a company is able to write off a portion of an asset's value each year until the end of that asset's useful life. The length of the recovery period varies from asset to asset, and is often set by the IRS. It often bears only a rough relationship to the time during which the asset can actually be used. See also: MACRS.

recovery period

The stipulated period during which a company fully depreciates an asset. Recovery periods for various kinds of assets are established by the government and often bear only a loose relationship to the profitable life of an asset.

Recovery Period

The period of years over which the cost of business assets is written off under ACRS or MACRS.
References in periodicals archive ?
The significance of this classification is that the developer can depreciate the entire property using a faster cost recovery period of 27.
If either the recovery period or the depreciation method for the replacement property is the same as for the relinquished property, then the period or the method that is the same is used to depreciate the replacement property (Treas.
The high reactors started the stress period with lower cortisol levels that peaked right after the stress test and returned to baseline during the recovery period.
In this study, hematocrit was measured before the exercise and during the two recovery periods.
The hsp 60 mRNA increased to a maximum 3-fold elevation at 4 and 8 hr into the recovery period and returned to control values by the end of the time course (Figure 3A).
Previous research understated the rate of economic depreciation, and thus overstated the appropriate recovery periods, because it neglected to account for the substantial expenditures devoted to building improvements after original construction, Deloitte says.
44) Section 467(e)(3)(A) provides recovery periods that are generally the same as under MACRS, except that 20-year property has a recovery period of 15 years and all buildings have a recovery period of 19 years.
1,2015 still would be subject to the new longer recovery period, but would be eligible for a transition rule.
Robert Watkins performed a procedure known as a ``microscopic discectomy'' that typically requires a shorter recovery period than conventional back surgery.
The instructions for the 2004 IRS Form 8829 "Expenses for Business Use of Your Home," Page 3, and the 2004 IRS Publication 587 "Business Use of Your Home," Page 10, both indicate that depreciation for business use of a home is based on the 39-year recovery period for nonresidential real property.
The result of a typical study on an office building might identify 10%, or $85,000, as land improvements, and another 15%, or $127,500, as personal property qualifying for a 7-year recovery period and the 200% declining balance method of depreciation.
179 property is not used predominantly in a trade or business at any time before the end of the property's recovery period, the taxpayer must recapture any benefit derived from expensing it, on Form 4797, Sales of Business Property (Also Involuntary Conversions and Recapture Amounts Under Sections 179 and 280F(b)(2)).