Macrs Depreciation Table
The Modified Accelerated Cost Recovery system is the current method of accelerated asset depreciation required by the United States income tax code.
According to MACRS all assets get divided up into certain classes that will dictate the number of years it will take to recover the total cost.
MACRS replaced ACRS in 1986 with the passing of the tax reform act. Basically this meant an expansion of different asset classes and a half year convention was added to simplify the first and last years of depreciation. Which in laymen’s terms means that it’s more “front loaded” than ACRS and allows for more recovery earlier in the assets life than later. Saving you money.
At this point I’m sure you wondering who to ask about figuring out the numbers behind any assets you’d like to claim. First of all, not all assets are depreciable. A business asset must meet three conditions:
- Be used in a business to produce income, rent, or royalty. (there are exceptions on assets that were expected to yield income but failed to)
- Be something that wears out, decays, or becomes obsolete, or loses value form natural causes
- Have a useful life that is longer than one year and can be measured.
Now the next step would be to figure out your timetable for how much you’ll be recovering year to year. This can be done very easily with an online tax service such as TurboTax Online.
All you have to do is enter your information into their secure system, and watch as the site lays it all for you. Hassle free, quick, secure, and extremely accurate. It will even search for relative programs to your situation for this tax year that you may not have known about.
Go check out, TurboTax today and see what kind of depreciation table you have in store for you and your assets.