Accelerated Cost Recovery System - ACRS


DEFINITION of 'Accelerated Cost Recovery System - ACRS'

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.

BREAKING DOWN 'Accelerated Cost Recovery System - ACRS'

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

  1. Capital Recovery

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

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

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

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

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

    A common depreciation-calculation system that involves applying ...
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