Definitions for "Modified Accelerated Cost Recovery System"
The method of depreciation introduced by the Tax Reform Act of 1986. MACRS is not an entirely new system of depreciation, but rather a series of significant modifications to the ACRS system. (See Accelerated Cost Recovery System.) MACRS is mandatory for most depreciable assets placed in service after December 31, 1986, and was available on an optional basis for assets placed in service after July 31, 1986, and before January 1, 1987. Under MACRS, costs of qualified property are written off over predetermined periods.
A 1986 act that set out rules for the depreciation of qualifying assets, allowing for greater acceleration over longer periods of time.
The Tax Reform Act of 1986 established the MACRS tax appreciation system prescribing depreciation methods for each class in lieu of statutory tables. Equipment is assigned among 3, 5, 7, 10, 15, or 20 year classes depending on ADR lives.
Modigliani and Miller Proposition I Momentum