MACRS
Business & Finance abbreviation · Tax
| Stands for | Modified Accelerated Cost Recovery System |
|---|---|
| Categories | Business & Finance |
MACRS stands for Modified Accelerated Cost Recovery System, a tax abbreviation.
US tax depreciation system that assigns business assets to recovery periods, such as 5 years for computers and vehicles, 7 for office furniture, 27.5 for residential rental buildings and 39 for commercial buildings, with accelerated methods for most equipment.
Example: The rental's structure is depreciated over 27.5 years under MACRS, separately from the land.
Usage notes
Introduced by the Tax Reform Act of 1986, replacing the earlier ACRS. Pronounced "makers." Bonus depreciation and section 179 expensing can write off much of an asset's cost in the first year instead. Depreciation claimed on real estate is "recaptured" and taxed at up to 25% when the property is sold.
Related abbreviations
More tax abbreviations
- ITIN – Individual Taxpayer Identification Number
- ITR – Income tax return
- K-1 – Schedule K-1
- LIHTC – Low-Income Housing Tax Credit
- LLC – Lifetime Learning Credit
- LTCG – Long-term capital gain
- MAGI – Modified adjusted gross income
- MFJ – Married filing jointly
- MFS – Married filing separately
- MTD – Making Tax Digital
- NI – National Insurance
- NIC – National Insurance contributions