Alternative Depreciation Schedule

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Alternative Depreciation Schedule

In the Modified Accelerated Cost Recovery System, a system of depreciation in which the cost of purchasing an asset is recovered over a fairly long period of time. This shows the asset as having a higher value each year. Therefore, the owner has a higher net worth than he/she would using the General Depreciation Schedule.
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Assets that are subject to either the general depreciation system of IRC Section 168(a) or the alternative depreciation system of IRC Section 168(g) may be grouped in one or more general asset accounts.
For property placed in service after 1986, the amount of the depreciation is limited to the amount determined using the alternative depreciation system (described above).
The 30% bonus depreciation is not available to property that must be depreciated under the alternative depreciation system (ADS).
The recapture amount is the difference between the section 179 amount deducted and the amount of deprecation that would have been allowed under the Alternative Depreciation System (ADS) for the years when the business use exceeded 50%.
168(g), which relates to the alternative depreciation system (Sec.
0 have a five-year recovery period for regular tax purposes under the general depreciation system (GDS) and a nine-year recovery period under the alternative depreciation system (ADS).
Under the corporate alternative minimum tax regime that was enacted in 1986, depreciation on property placed in service after 1986 must be computed by using the class lives prescribed by the alternative depreciation system of section 168(g) and either (1) the straight-line method in the case of property subject to the straight-line method under the regular tax, or (2) the 150-percent declining balance method in the case of other property.
Under the AMT, depreciation on property placed in service after 1986 must be computed by using the class lives prescribed by the alternative depreciation system of section 168(g) and either (1) the straight-line method in the case of property subject to the straight-line method under the regular tax, or (2) the 150-percent declining balance method in the case of other property.
Regular tax depreciation may be computed using either of two systems, the General Depreciation System (GDS) or the Alternative Depreciation System (ADS), both of which are part of MACRS.
Property placed in service in tax years beginning after 1989 is depreciated using the alternative depreciation system of Internal Revenue Code section 168(g).
The ACE depreciation deduction for Property Group I is computed under the Alternative Depreciation System (ADS) of Sec.
Taxpayers have complained that this method caused disparities between the basis of domestic assets and foreign assets of unincorporated and flow-through foreign entities, due to the use of accelerated depreciation methods for domestic-use assets and the straight-line alternative depreciation system (ADS) method used for foreign-use assets.
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