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Modified Accelerated Cost Recovery System (MACRS)

Modified Accelerated Cost Recovery System (MACRS) definition - business

Modified Accelerated Cost Recovery System (MACRS)

A depreciation system in which assets are classified according to a prescribed life or recovery period that bears only a rough relationship to their expected economic lives. MACRS represents a 1986 change to the Accelerated Cost Recovery System that was instituted in 1981. The depreciation rates in MACRS are derived from the double-declining-balance method of depreciation. See also class life.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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