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MACRS is the US tax depreciation system. Property is assigned to a recovery class and depreciated using published percentage tables that build in a declining-balance switch to straight-line and the half-year convention, which is why a five-year asset is written off over six tax years.
MACRS deduction
Deduction = Depreciable basis x Table percentage for the recovery year
Half-year convention
Year 1 receives half a year of depreciation, which pushes an n-year class into n+1 tax years
Indicative US tax depreciation using the general MACRS half-year-convention tables. Mid-quarter and mid-month conventions, bonus depreciation, Section 179 and listed-property limits are not applied. Confirm treatment with a qualified tax adviser.
Computers and vehicles are typically 5-year, office furniture 7-year and most machinery 7-year. The IRS asset class tables govern.
No. MACRS ignores salvage value and depreciates the full basis, which is one of the main differences from book depreciation.