MACRS stands for Modified Accelerated Cost Recovery System. It is the depreciation method mandated by the IRS (introduced by the Tax Reform Act of 1986) for most tangible business property placed in service after December 31, 1986.

What recovery period should I use?

The IRS assigns property classes: 3-year (e.g., racehorses), 5-year (computers, cars, trucks), 7-year (office furniture, machinery — the default class), 10-year (water transportation), 15-year (improvements to land), 20-year (farm buildings), 27.5-year (residential rental), 39-year (nonresidential real property). Check IRS Publication 946 for your specific asset.

What is the half-year convention?

Under the half-year convention, all assets are treated as placed in service at the midpoint of the tax year regardless of their actual in-service date. This means you get a half-year of depreciation in both the first and the last recovery year.

When does the mid-quarter convention apply?

The mid-quarter convention is required when the total depreciable basis of assets placed in service during the last three months of the tax year exceeds 40% of all assets placed in service that year. It treats each asset as placed in service at the midpoint of the quarter.

How does the double-declining-balance method work?

DDB applies twice the straight-line rate to the remaining book value each year. The method automatically switches to straight-line when that would yield a larger deduction, ensuring the asset is fully depreciated over the recovery period.

Does this include the Section 179 or bonus depreciation?

No. This calculator shows standard MACRS GDS rates only. Section 179 expensing and bonus depreciation are separate elections that allow immediate deduction of some or all of the cost in the year placed in service.

MACRS Depreciation Helper

Name: MACRS Depreciation Helper
Availability: InStock
Author: Nham Vu

Enter your asset cost, recovery period, and convention to get a full MACRS depreciation schedule for US tax purposes.

Asset Details

Asset Cost Basis ($)

Recovery Period

Convention

Year Placed in Service

Enter asset details and click Calculate Schedule to see your MACRS depreciation table.

Depreciation Schedule

Tax Year	Rate %	Deduction	Accum. Depr.	Book Value

Rates based on IRS Publication 946 GDS tables. Consult a tax professional for your specific situation.

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Summary

Enter your asset cost, recovery period, and convention to get a full MACRS depreciation schedule for US tax purposes.

How it works

Enter the asset's cost basis (purchase price plus improvements).
Select the GDS recovery period that matches your asset class (e.g., 5-year for computers, 7-year for office furniture).
Choose the depreciation convention — half-year is standard; mid-quarter applies when more than 40% of assets are placed in service in Q4.
Click Calculate to generate the full year-by-year depreciation table.
Review the deduction for each tax year and the remaining book value.
Copy or print the schedule to include with your tax workpapers.

Use cases

Plan cash flow by projecting annual tax depreciation deductions.
Verify IRS depreciation tables for asset additions in your business.
Compare the tax benefit of immediate Section 179 expensing vs. MACRS.
Build multi-year tax projections for newly purchased equipment.
Prepare depreciation schedules for corporate or partnership tax returns.
Educate staff or clients on how accelerated depreciation works.
Reconcile book vs. tax depreciation for deferred tax calculations.
Model the after-tax cost of capital equipment purchases.

Frequently Asked Questions

Related tools

Straight Line Depreciation Calculator Declining Balance Depreciation Sum Of Years Depreciation Depreciation Calculator

Last updated: 2026-05-23 · Reviewed by Nham Vu