Accelerated Cost Recovery System


Also found in: Acronyms.

Accelerated cost recovery system (ACRS)

Schedule of depreciation rates allowed for tax purposes.

Accelerated Cost Recovery System

An accounting technique formerly used in the United States to tax a tangible asset based upon its estimated depreciation. The estimated depreciation bore only a rough relationship to an asset's actual life, and was designed to decrease the taxation in the early years of an asset's ownership. ACRS was instituted by the Economic Recovery Act of 1981 and amended in 1986 to create the Modified Accelerated Cost Recovery System. See also: Absolute Physical Life.

Accelerated Cost Recovery System (ACRS)

An accounting technique for calculating the depreciation of tangible assets on the basis of the estimated-life classifications into which the assets are placed. ACRS was initiated by the Economic Recovery Act of 1981. The goal was to make investments more profitable by sheltering large amounts of income from taxation during the early years of an asset's life. The initial law established classifications of 3, 5, 10, and 15 years; these classifications were subsequently modified in order to reduce depreciation and increase the government's tax revenues. The classification into which an asset is placed determines the percentage of the cost potentially recoverable in each year. See also Modified Accelerated Cost Recovery System.

accelerated cost recovery system (ACRS)

A method of tax accounting in which the IRS simplified the rules for depreciation of property.It has been replaced by the modified accelerated cost recovery system (MACRS),but you will still encounter references to ACRS.

Accelerated Cost Recovery System (ACRS)

The system of depreciation mainly used for property placed in service after 1980 and before 1987. ACRS is also used for certain property placed in service after 1986 that is acquired from a related party who used the property before 1987. See Modified Accelerated Cost Recovery System (MACRS) for property placed in service after 1986.
References in periodicals archive ?
* Increasing to 18 from 15 the number of years over which real property (other than low-income housing) can be depreciated under the accelerated cost recovery system of ERTA.
Solar energy property described in section 48 is five-year property for purposes of modified accelerated cost recovery system (MACRS) depreciation.
The second business-oriented provision deals with depreciation under the so-called modified accelerated cost recovery system (MACRS).
In accordance with the Modified Accelerated Cost Recovery System (MACRS), case law, and various IRS revenue rulings, the study allocates total building costs between IRC section 1250 real property (27.5-39-year life) and IRC section 1250 personal property (5-15-year life).
They prohibited the use of component depreciation and created a new method referred to as Modified Accelerated Cost Recovery System or MACRS.
Under the AMT, depreciation for personal property placed in service after 1986 is generally computed under the modified accelerated cost recovery system (MACRS) using the 150-percent declining balance method (switching to straight line at a point maximizing the deduction).
If the equipment were purchased it would be subject to themodified accelerated cost recovery system (MACRS) for property acquired after 1986 and one-half year's depreciation would be taken in the year of acquisition and the year of disposal.
Now, under the new Accelerated Cost Recovery System, that was reduced to 15 years.
The IRS also issued proposed regulations on dispositions of property depreciable under the modified accelerated cost recovery system (REG-110732-13).
[section] 1.168(i)-6 provide rules and examples to help harmonize depreciation treatment under the modified accelerated cost recovery system (MACRS) of the exchanged basis of relinquished and replacement property in like-kind exchanges and involuntary conversions under IRC [section][section] 1031 and 1033.
Ever since the accelerated cost recovery system (ACRS) was introduced in 1982, and the modified accelerated cost recovery system (MACRS) was introduced four years later, states have decoupled and recoupled their tax codes with the IRC.
Residential real property must be depreciated over 27.5 years and non-residential real property over a life of 31.5 under methods prescribed under the Modified Accelerated Cost Recovery System (MACRS).

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