Modified Accelerated Cost Recovery System - MACRS

What is a 'Modified Accelerated Cost Recovery System - MACRS'

A modified accelerated cost recovery system (MACRS) is 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.

BREAKING DOWN 'Modified Accelerated Cost Recovery System - MACRS'

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