Accelerated Cost Recovery System - ACRS

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DEFINITION

A system of depreciation introduced by the Economic Recovery Tax Act of 1981. ACRS depreciation is based on recovery periods instead of useful life. These periods were predetermined by the IRS.

INVESTOPEDIA EXPLAINS

The modified accelerated cost recovery system (MACRS) replaced ACRS for property placed into service after 1986.


RELATED TERMS
  1. Capital Recovery

    1. The earning back of the initial funds put into an investment. Capital recovery ...
  2. Depreciable Property

    Any type of asset that is eligible for depreciation treatment. Depreciable property ...
  3. Alternative Depreciation System ...

    A depreciation schedule with a straight-line recovery period that generally ...
  4. Placed In Service

    The point in time when an asset that can be depreciated is first placed in use. ...
  5. Adjusted Basis

    The proportionate value of an asset or security that reflects any deductions ...
  6. Declining Balance Method

    A common depreciation-calculation system that involves applying the depreciation ...
  7. Modified Accelerated Cost Recovery ...

    The new accelerated cost recovery system, created after the release of the Tax ...
  8. Useful Life

    An estimate of how long one can expect to use an income-producing item in a ...
  9. Depreciation

    1. A method of allocating the cost of a tangible asset over its useful life. ...
  10. Section 1250

    A section of the United States Internal Revenue Service Code stating that a ...
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