MACRS Depreciation Calculator

Calculate Modified Accelerated Cost Recovery System (MACRS) depreciation for US tax purposes. Supports GDS and ADS methods with all IRS recovery periods and conventions.

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IRS MACRS Tables

Uses official IRS MACRS percentage tables from Publication 946 for accurate tax depreciation calculations across all property classes.

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GDS and ADS Support

Switch between General Depreciation System (200% or 150% declining balance) and Alternative Depreciation System (straight-line) methods.

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Frequently Asked Questions

What is MACRS depreciation?
MACRS (Modified Accelerated Cost Recovery System) is the primary depreciation method used for US federal income tax purposes. Established by the Tax Reform Act of 1986, it applies to most tangible property placed in service after 1986. MACRS uses predefined recovery periods and declining balance methods set by the IRS to calculate annual depreciation deductions for businesses.
What is the difference between GDS and ADS?
GDS (General Depreciation System) uses shorter recovery periods and the 200% or 150% declining balance method, providing larger deductions in earlier years. ADS (Alternative Depreciation System) uses longer recovery periods and the straight-line method, spreading deductions more evenly over time. GDS is the default for most property. ADS is required for certain assets like tax-exempt use property, property used predominantly outside the US, and some farm property.
What is the half-year convention?
The half-year convention assumes all property placed in service during the year was placed in service at the midpoint of that year. This means you claim half of the first year's depreciation in the year you acquire the asset, and the remaining half in the year after the recovery period ends. It is the most common convention for personal property under MACRS.
Which property class should I use?
The IRS assigns recovery periods based on asset type. 3-year property includes certain manufacturing tools and racehorses over 2 years old. 5-year property covers computers, automobiles, and office equipment. 7-year property includes office furniture, most machinery, and any property without a designated class. 15-year covers land improvements like fences and parking lots. 27.5 years is for residential rental property, and 39 years for nonresidential real property such as office buildings.
Can I use MACRS for property placed in service before 1987?
No. MACRS only applies to property placed in service after December 31, 1986. Property placed in service before that date uses the Accelerated Cost Recovery System (ACRS) or older depreciation methods. If you have property from before 1987, you must continue using the original depreciation method. This calculator is specifically designed for MACRS-eligible property placed in service after 1986.