modified accelerated cost recovery system
Modified Accelerated Cost Recovery System. The modified accelerated cost recovery system (MACRS) is a depreciation method that applies to assets placed in service after 1986. This depreciation system allows the cost basis of certain tangible property to be recovered over the specified life of the asset by a depreciation deduction each year until exhausted.
(US Only) The Modified Accelerated Cost Recovery System (MACRS) is a form of accelerated depreciation enacted by the US Congress in 1981 and 1986. The depreciation system was introduced in 1981 as the Accelerated Cost Recovery System (ACRS). The intent of Congress was to encourage investment in depreciable assets by allowing accelerated depreciationâand thus larger tax savings in the early years of depreciable life.