Accelerated Cost Recovery System (ACRS) -- A set of laws for the depreciation of a recognized asset within a duration that is smaller than the estimated economic life of the asset. The ACRS was laid down in the Economic Recovery Tax Act of 1981 (ERTA) and subsequently modified in the Tax Reform Act of 1986. The ACRS rules generally facilitate acceleration over longer periods than ERTA rules and were applicable to property that was used between 1980 and 1987.
Accelerated Cost Recovery System (ACRS) -- ACRS consists of accelerated depreciation methods and an alternate ACRS method that could have been elected. The alternate ACRS method used a recovery percentage based on a modified straight line method. The law prescribes fixed percentages to be uses for each class of property.
Property depreciable under ACRS is called recovery property. The recovery class of property determines the recovery period. Generally, the class life of property places it in a 3-year, 5-year, 10-year, 15-year, 18-year, or 19-year recovery class.
Under ACRS, the prescribed percentages are used to recover the unadjusted basis of recovery property. To figure a depreciation deduction, you multiply the prescribed percentage for the recovery class by the unadjusted basis of the recovery property.
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