RIA L-8100 The Modified Accelerated Cost Recovery System (MACRS).

Capital outlays for virtually all tangible 'depreciable' business or income-producing 'recovery property' are recovered through depreciation deduction allowances determined under the Modified Accelerated Cost Recovery System (MACRS). MACRS depreciation deductions are determined by applying a specified 'depreciation method' to the asset's depreciable basis after reduction by the expense election amount (if any). Salvage value is disregarded under MACRS. MACRS allows taxpayers to elect to use straight-line depreciation in lieu of speedy depreciation.