Accelerated cost recovery system (ACRS) depreciation schedule
Encyclopedia of Business Terms and Methods, ISBN 978-1-929500-10-9. Copyright © 2012 by Marty J.Schmidt. Revised 13 January 2012.
The Meaning of Accelerated Cost Recovery System (ACRS)
(US Only) The accelerated cost recovery system (ACRS) is a form of accelerated depreciation enacted by the US Congress as part of the Economic recovery Act of 1981. The intent of Congress was to encourage investment in depreciable assets by allowing accelerated depreciation—and thus larger tax savings in the early years of appreciable life. ACRS schedules were applied for assets placed in service between 1980 and 1987.
ACRS was modified in 1986. The 1986 modification, known as MACRS (Modified ACRS), is currently applied by many US companies to many classes of assets that includes computing equipment, office furniture, automobiles, construction assets, and many others. (See Depreciation schedule for illustrations and comparisons with other depreciation schedules).
MACRS depreciation schedules for various classes of assets are given in US Government IRS Publication 946, "How to Depreciate Property."
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