Optional MACRS Recovery Tables

Under the original ACRS provisions of 1981, statutory cost recovery deductions were mandated in the Code, and Congress furnished statutory recovery tables that provided recovery factors for each year of an asset's life. Determining the cost recovery deduction each year was simply accomplished by multiplying the cost recovery basis of the asset by the appropriate recovery factor. In contrast to the original ACRS, Congress made no mention of "recovery tables" in their 1986 modifications of Sec. 168; rather, MACRS was referred to as a "depreciation method."

However, in 1987 the IRS released a number of tables (18!) of recovery factors for the 1986 provisions. These tables reflect all acquisition year assumptions and recovery methods mandated by Sec. 168. The complete listing of tables and recovery factors may be found in the Explanations data base by referencing Rev. Proc. 87-57, 1987-2 CB 687. However, for purposes of this module, a subset of the more commonly used recovery tables is provided as Appendix A to this Module. To quickly refer to these tables, select the Table of Contents button and select Appendix A.