Accelerated Cost Recovery System (ACRS), 1981–1986
The accelerated cost recovery system (ACRS) [IRS95] was the defined depreciation method from 1981 through 1986. All depreciable assets put into service during these years used the ACRS method. There are two variants of the ACRS method, the prescribed method and the alternative method. Both are described here.
ACRS PRESCRIBED METHOD
Under the ACRS prescribed method, all depreciable assets are assigned to one of four separate classes of property:
3-year property, which includes cars, light-duty trucks, machinery and equipment used in research, and all other equipment having an asset depreciation range (ADR) life of 4 years or less
5-year property, which includes most production equipment and public ...
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