BROWSE

Accelerated Cost Recovery System (ACRS)

What is 'Accelerated Cost Recovery System - ACRS'

A system of depreciation introduced by the Economic Recovery Tax Act of 1981. ACRS depreciation is based on recovery periods instead of useful life. These periods were predetermined by the IRS.

Explaining 'Accelerated Cost Recovery System - ACRS'

The modified accelerated cost recovery system (MACRS) replaced ACRS for property placed into service after 1986.


Further Reading


Reforming Cost Recovery Allowances for Debt Financed Depreciable Property
heinonline.org [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …

The new economics of accelerated depreciationThe new economics of accelerated depreciation
www.nber.org [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …

Comparing acceleration of new Accelerated Cost Recovery System (ACRS) vs. prior law double declining balance depreciation: a net present value approachComparing acceleration of new Accelerated Cost Recovery System (ACRS) vs. prior law double declining balance depreciation: a net present value approach
agris.fao.org [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …

The Economic Recovery Tax Act of 1981 and corporate capital structureThe Economic Recovery Tax Act of 1981 and corporate capital structure
www.jstor.org [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …

Tax subsidies finance construction and hard energy pathTax subsidies finance construction and hard energy path
www.osti.gov [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …

The Accelerated Cost Recovery System As Provided By The Economic Recovery Tax Act Of 1981The Accelerated Cost Recovery System As Provided By The Economic Recovery Tax Act Of 1981
scholars.carroll.edu [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …

… OF TAX LAWS ON THE VALUE OF THE FIRM (INVESTMENT CREDIT, EVENT STUDY, INCENTIVES, PERCENTAGE DEPLETION ALLOWANCE, ACCELERATED …… OF TAX LAWS ON THE VALUE OF THE FIRM (INVESTMENT CREDIT, EVENT STUDY, INCENTIVES, PERCENTAGE DEPLETION ALLOWANCE, ACCELERATED …
elibrary.ru [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …

An analysis of ACRS during inflationary periodsAn analysis of ACRS during inflationary periods
www.jstor.org [PDF]
… Acceleration of capital cost recovery, one of the two cornerstones of ERTA, was designed … depreciation methods than did straight line depreciation, and that more rapid depreciation would … Congress, in 1969, placed numerous restrictions on the use of accelerated depreciation of …



Q&A About Accelerated Cost Recovery System (ACRS)


What was modified about MACRS?

It modified the way property depreciates over time. This modification made it more accurate than its predecessor, which had been based on predetermined periods of time that were not always appropriate to each piece of property being depreciated. For example, a computer would have different periods of depreciation than an automobile or truck would have under this new method because computers are much more complex and expensive to maintain and repair than cars or trucks are, so they wear out faster and need replacement sooner than cars do.

Which one should I use if I am allowed to choose between them ?

If you expect that most equipment will be fully depreciated within five years

How did MACRS replace ACRS?

Modified accelerated cost recovery system replaced it after 1986.

When was ACRS introduced?

It was introduced in 1981.

How does MACRS work differently from the original version of ACRS ?

Under MACRIS , you can choose between two methods for determining your deduction amount . You can use either the 200% declining balance method or 150% declining balance method . Both methods allow you to deduct part of your cost each year until all your costs are recovered . However , with the 200% declining balance method , you get larger deductions in earlier years . With both methods , you must reduce your deduction by half when any part of your equipment is sold or disposed of before its recovery period ends .

What is ACRS?

Accelerated Cost Recovery System (ACRS) is a system of depreciation introduced by the Economic Recovery Tax Act of 1981.

Who created ACRS?

The IRS created it.

What does ACRS stand for?

The acronym stands for Accelerated Cost Recovery System.

Leave a Reply

Your email address will not be published. Required fields are marked *