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.
"A mandatory system of depreciation for income tax purposes, enacted by Congress in 1986, that requires a cost recovery allowance to be computed (1) on the unadjusted cost of property being recovered, and (2) over a period of years prescribed by the law for all property of similar types."
A method of depreciation, introduced by the Tax Reform Act of 1986, used for most property today.
An IRS system used to calculate the amount of annual depreciation allowable for income tax purposes on depreciable assets, including depreciable realty (buildings, improvements, and other structures permanently attached to the land) and personalty (any tangible asset not part of a building or other permanent structure (used in a trade, business, or income-producing activity.
A method of calculating tax depreciation (used as tax deductions) introduced by the Tax Reform Act of 1986 and applicable to most equipment placed in service after 1986. It replaces the older ACRS depreciation schedule. MACRS depreciation begins as double declining balance and then switches to straight line method.
The depreciation method generally used since 1986 for writing off the value of depreciable property other than real estate, over time. MACRS allows you to write off the cost of assets faster than the straight-line depreciation method.
MACRS provides a uniform method for all taxpayers to use to calculate the depreciation for each asset. Using the basis, class life, and the MACRS tables, you can calculate the deduction for each asset in the year it is placed in service and each subsequent year of its class life.
The standard system for calculating depreciation deductions for most tangible personal property placed in service after 1986. The system for calculating depreciation deductions for most tangible personal property placed in service before 1987 is the Accelerated Cost Recovery System (ACRS). Also see ‘Deduct” and “Depreciation.
The system for computing depreciation for most business assets.
The current tax depreciation system as introduced by the Tax Reform Act of 1986, effective for equipment placed in service after December 31, 1986.
(U.S. tax based) One of several utilized depreciation methodologies for federal income tax purposes.
A modified version of the ACRS depreciation system used for assets acquired after 1986. This system is less favorable for businesses and stretches out the number of years during which business assets can be depreciated.
IRS regulations that allocate the cost of an asset according to predefined recovery periods and percentages.