MACRS Depreciation Calculator
Generates IRS-compliant MACRS depreciation schedules for business assets year by year
Original cost of the asset
Half-year convention, 200% declining balance
Enter asset cost and recovery period to see the schedule
Frequently Asked Questions
What is MACRS depreciation?
MACRS (Modified Accelerated Cost Recovery System) is the IRS-required method for depreciating most business assets. It uses declining balance depreciation with a switch to straight-line, allowing larger deductions in early years when the asset is newest.
What are the MACRS recovery periods?
Common periods: 3 years (small tools, software), 5 years (computers, vehicles, office equipment), 7 years (furniture, fixtures), 10 years (boats, agricultural structures), 15 years (land improvements, restaurants), 20 years (utilities), 27.5 years (residential rental), 39 years (commercial buildings).
What is the half-year convention?
MACRS assumes assets are placed in service at the midpoint of the year, regardless of actual date. This means you get half a year of depreciation in the first and last years. The mid-quarter convention applies if over 40% of assets are placed in service in Q4.
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