MACRS


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Modified Accelerated Cost Recovery System (MACRS)

A 1986 act that set out rules for the depreciation of qualifying assets, allowing for greater acceleration over longer periods of time.

Modified Accelerated Cost Recovery System

An accounting technique used in the United States to tax a tangible asset based upon its estimated depreciation. The estimated depreciation bears only a rough relationship to an asset's actual life, and is designed to decrease the taxation in the early years of an asset's ownership. The Modified Accelerated Cost Recovery System replaced the Accelerated Cost Recovery System in 1986, and increased the deductions an owner is allowed to take in the early years of ownership. See also: Absolute Physical Life.

MACRS

Modified Accelerated Cost Recovery System (MACRS)

MACRS is the depreciation system used for most property placed in service after December 31, 1986. But ACRS (see Accelerated Cost Recovery System) must be used for certain property acquired from a related party if that property was used by the related party before 1987.
References in periodicals archive ?
The combination of the ITC and MACRS bonus tax benefits shifts nearly 61 percent of the project cost onto federal taxpayers.
168(i)-8T(a) through (i) provide new rules relating to dispositions of MACRS assets.
Total Basis Eligible for MACRS Depreciation $260,000
Under MACRS, a residential building will typically be depreciated over 27.
Additionally, 50 percent of the money received from a 1603 grant could also be added to the basis for determining MACRS.
Accounting and disposition rules for MACRS property.
One example would be if a company acquires $100k of 5-year property, which is going to be depreciated using the MACRS percentages under the Half-Year method.
The equipment will be depreciated under the MACRS 7-year class.
MACRS depreciation), and then translate the taxable income or loss computed in the local currency into the owner's functional currency.
and was depreciated using the standard MACRS statutory rates.
The equipment is MACRS property with 5-year class life and half year convention applies.
Assuming 100 percent business use, in 2009 the taxpayer would be able to utilize the Section 179 deduction, a bonus depreciation deduction, and MACRS depreciation for a net deduction of about $40,000, or 80 percent of the cost of the vehicle.