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MACRS Depreciation Calculator

Work out macrs depreciation instantly with clear inputs, formula shown and shareable results.

About MACRS Depreciation Calculator

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.

Formulas

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

Worked example

With the default values below, MACRS Depreciation Calculator returns MACRS deduction for the year of $32,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Depreciable basis
100,000
MACRS recovery periodone of 3-year, 5-year, 7-year, 10-year
5-year
Recovery year
2

Results

MACRS deduction for the year
$32,000.00
Applicable MACRS percentage
32.00%
Accumulated deduction to date
$52,000.00
Remaining basis
$48,000.00

Step by step

  1. 1Values used
  2. 2MACRS deduction
  3. 3Half-year convention
  4. 4MACRS deduction for the year= 32,000.00
  5. 5Applicable MACRS percentage= 32.00
  6. 6Accumulated deduction to date= 52,000.00
  7. 7Remaining basis= 48,000.00

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Which recovery period applies to my asset?

Computers and vehicles are typically 5-year, office furniture 7-year and most machinery 7-year. The IRS asset class tables govern.

Does MACRS use salvage value?

No. MACRS ignores salvage value and depreciates the full basis, which is one of the main differences from book depreciation.

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