Modified Accelerated Cost Recovery System

Also found in: Acronyms.

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.

Modified Accelerated Cost Recovery System (MACRS)

A depreciation system in which assets are classified according to a prescribed life or recovery period that bears only a rough relationship to their expected economic lives. MACRS represents a 1986 change to the Accelerated Cost Recovery System that was instituted in 1981. The depreciation rates in MACRS are derived from the double-declining-balance method of depreciation.

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.

Mentioned in ?

References in periodicals archive ?

To qualify, the property must fall into one of six categories: (1) property to which the modified accelerated cost recovery system (MACRS) rules apply and which has a recovery period of less than 20 years, (2) computer software not covered by Sec.

GO Zone Act provisions for hurricane victims

The calculation base equals the amount allowable under the modified accelerated cost recovery system (MACRS).

The Contract With America: the new majority in Congress sets out to prove fewer taxes are the cornerstone of economic prosperity

Because it applies only to properties placed in service before 1987, and because such properties had a maximum modified accelerated cost recovery system (MACRS) recovery period of 19 years, they will all be fully depreciated by 2007.

The ins and outs of recapture

Surprisingly, the AJCA did not extend the 30% or 50% bonus cost recovery regime, thus subjecting assets placed in service after 2004 to normal modified accelerated cost recovery system depreciation and AMT adjustments.

The AJCA's domestic business provisions: the American Jobs Creation Act of 2004 (AJCA) is an expansive piece of legislation touching many types of taxpayers. This article discusses the AJCA provisions that primarily affect U.S. domestic businesses

Earlier this year, the Internal Revenue Service issued proposed regulations regarding the modified accelerated cost recovery system (MACRS).

Midquarter depreciation convention

Prior to the enactment of the modified accelerated cost recovery system (MACRS), the Service ruled that the average useful lives for the initial clearing and grading for electric transmission lines and electric distribution lines were 84 years and 46 years, respectively.

Class lives for utility grading costs

Taxpayers should also be aware that this is a straight-line method, unlike other modified accelerated cost recovery system 15-year recovery property, which is generally eligible for the 150% declining-balance method.

15-year recovery period for certain qualified leasehold improvements

168, assigns a seven-year modified accelerated cost recovery system period to motorsports racetrack complexes (which include land improvements and support facilities, but not transportation equipment, warehouses, administrative buildings, hotels or motels).

Seven-year recovery period for motorsports racetrack complexes

The creation of the modified accelerated cost recovery system and the revision of the corporate alternative minimum tax (AMT).

Taking control of tax season: how tax practices are evolving in response to tax reform

In March 2004, the IRS published temporary and proposed regulations (TD 9115; REG-106590-00) addressing depreciation of modified accelerated cost recovery system (MACRS) property acquired in a like-kind exchange under Sec.

Practical application of the new MACRS depreciation regs

By combining the 30% bonus depreciation enacted by the Job Creation and Worker Assistance Act of 2002 (increased to 50% by the Jobs and Growth Tax Relief Reconciliation Act of 2003) with a cost-segregation study, "qualified" new property eligible for 50% bonus depreciation with a modified accelerated cost recovery system (MACRS) five-year life, using a half-year convention, could qualify for as much as 60% of cost being depreciated in the first year.

Increased cashflow for real estate owners

168(k)-1T(b)(2)(i)(A), "eligible property" includes modified accelerated cost recovery system (MACRS) property with a recovery period of 20 years or less.