Modified Accelerated Cost Recovery System - MACRS

AAA

DEFINITION of 'Modified Accelerated Cost Recovery System - MACRS'

The new accelerated cost recovery system, created after the release of the Tax Reform Act of 1986, which allows for greater accelerated depreciation over longer time periods.

INVESTOPEDIA EXPLAINS 'Modified Accelerated Cost Recovery System - MACRS'

Faster acceleration allows individuals to deduct greater amounts during the first few years of an asset's life.

RELATED TERMS
  1. Capital Recovery

    1. The earning back of the initial funds put into an investment. ...
  2. Half-Year Convention For Depreciation

    A depreciation schedule that treats all property acquired during ...
  3. Recovery Property

    A specific class of depreciable real estate. Recovery property ...
  4. Depreciable Property

    Any type of asset that is eligible for depreciation treatment. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax ...
  6. Accounting

    The systematic and comprehensive recording of financial transactions ...
Related Articles
  1. Active Trading

    An Introduction To Depreciation

  2. Options & Futures

    Use Real Estate To Put Off Tax Bills

  3. Options & Futures

    Advanced Financial Statement Analysis

  4. Taxes

    Why should I keep records on my tax-exempt ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center