Modified Accelerated Cost Recovery System - MACRS


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.

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.

  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 ...
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