MACRS
Lesson:
The Modified Accelerated Cost Recovery System (MACRS) is the method used by the IRS for calculating tax deductions on depreciation of business assets.
Each type of item has its own number of years and depreciation type (either declining balance or straight line).
You're a tax preparer, trying to figure out the depreciation of busines assets.
This is what you've been told:
- The business purchased an item categorized as 'non-residential real property.'
What is MACRS depreciation method for the item?
Answer:
- Non-residential real property is depreciated using a 39-year straight-line depreciation