What are IRS depreciation methods?

Please refer to IRS publication 527 for detail.

There are three ways to figure depreciation. The depreciation method you use depends on the type of property and when it was placed in service. For property used in rental activities you use one of the following.

• MACRS (Modified Accelerated Cost Recovery System) for property placed in service after 1986.

• ACRS (Accelerated Cost Recovery System) for property placed in service after 1980 but before 1987.

• Useful lives and either straight line or an accelerated method of depreciation, such as the declining balance method, for property placed in service before 1981.