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. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax ...
Related Articles
  1. An Introduction To Depreciation
    Active Trading

    An Introduction To Depreciation

  2. Use Real Estate To Put Off Tax Bills
    Options & Futures

    Use Real Estate To Put Off Tax Bills

  3. Advanced Financial Statement Analysis
    Options & Futures

    Advanced Financial Statement Analysis

  4. Federal Tax Brackets
    Taxes

    Federal Tax Brackets

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center