Sentences with phrase «accelerated depreciation methods»

The Tax Reform Act of 1986 eliminated preferential capital gain treatment so that all capital gains were taxed as ordinary income, enacted «passive loss» and «at risk» rules, and eliminated accelerated depreciation methods in favor of straight line depreciation consisting of 39 years for commercial property and 27.5 years for residential property.

Not exact matches

The two most common methods of accelerating depreciation are «sum of the years» digits» and «double declining balance.»

MACRS refers to «modified accelerated cost recovery system,» which is the default depreciation method used for tax purposes.

Standard Mileage Rate Restrictions: The business standard mileage rate may not be used for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle.

With straight - line depreciation you would be permitted to write off 20 percent of the cost each year; the accelerated method generally lets you deduct 20 percent of the business cost the first year, 32 percent the second, 19.2 percent the third, 11.52 percent in years four and five, and the remaining 5.8 percent in the sixth year.

Accelerated Depreciation: A depreciation method that allows you to deduct or depreciate a greater portion of the cost of depreciable property in the first years after the property is placed into service, rather than spreading (depreciating) the cost evenly over the life of the asset, as with the straight - Depreciation: A depreciation method that allows you to deduct or depreciate a greater portion of the cost of depreciable property in the first years after the property is placed into service, rather than spreading (depreciating) the cost evenly over the life of the asset, as with the straight - depreciation method that allows you to deduct or depreciate a greater portion of the cost of depreciable property in the first years after the property is placed into service, rather than spreading (depreciating) the cost evenly over the life of the asset, as with the straight - line method.

Modified Accelerated Cost Recovery System (MACRS): The depreciation method generally used since 1986 for writing off the value of depreciable property other than real estate, over time.