The Modified Accelerated Cost Recovery System (MACRS) is the standard tax depreciation method for business assets in the United States. Whether an organization is depreciating a fleet of delivery vehicles, a warehouse full of manufacturing equipment, or a newly constructed commercial building, MACRS determines how quickly those costs can be recovered through annual tax deductions. This comprehensive guide provides complete MACRS depreciation tables for both GDS and ADS systems, mid-quarter convention schedules, step-by-step calculation methods, industry-specific worked examples, rental property depreciation rules, and practical tax strategies that CFOs and tax professionals can apply immediately.
What Is MACRS Depreciation?
MACRS depreciation is the tax depreciation system established by the IRS under the Tax Reform Act of 1986. It replaced the earlier Accelerated Cost Recovery System (ACRS) and remains the required method for most tangible property placed in service after 1986. Under MACRS, businesses recover the cost of an asset over a predetermined recovery period using either accelerated or straight-line depreciation methods.
Unlike book depreciation methods that companies select for financial reporting under GAAP, MACRS depreciation follows specific IRS rules that dictate both the recovery period and the depreciation method. This distinction matters: an asset may have a 10-year useful life for GAAP reporting purposes but a 7-year recovery period under MACRS for tax purposes.
MACRS vs. Straight-Line Depreciation
| Feature | MACRS (GDS) | Straight-Line |
|---|---|---|
| Deduction pattern | Accelerated (front-loaded) | Equal annual amounts |
| Early-year deductions | Higher | Lower |
| Tax benefit timing | Immediate cash flow advantage | Spread evenly |
| Salvage value | Ignored (depreciate to zero) | Subtracted from basis |
| Primary use | Federal tax returns | Financial statements (GAAP) |
MACRS Property Classes
MACRS assigns every depreciable asset to a property class that determines its recovery period. The IRS classifies assets based on their type, use, and industry. Correctly identifying the property class is the critical first step in any MACRS depreciation calculation.
| Recovery Period | GDS Method | Common Asset Examples |
|---|---|---|
| 3-Year | 200% DB | Tractor units, race horses (2+ years), specialized small tools |
| 5-Year | 200% DB | Automobiles, trucks, computers, copiers, construction equipment, solar energy property |
| 7-Year | 200% DB | Office furniture, agricultural machinery, railroad track, manufacturing equipment |
| 10-Year | 200% DB | Vessels, barges, tugs, single-purpose agricultural structures |
| 15-Year | 150% DB | Land improvements (parking lots, sidewalks, fences, landscaping) |
| 20-Year | 150% DB | Farm buildings, municipal sewers |
| 27.5-Year | Straight-line | Residential rental property (apartments, rental houses) |
| 39-Year | Straight-line | Nonresidential real property (office buildings, warehouses, factories) |
Identifying the correct property class directly impacts tax deductions. A cost segregation study can reclassify building components from the default 39-year class to shorter 5-, 7-, or 15-year classes, significantly accelerating MACRS depreciation deductions for commercial property owners.
MACRS Depreciation Table (GDS — Half-Year Convention)
The following MACRS depreciation table shows the annual depreciation percentage for each property class under the General Depreciation System using the half-year convention. These are the percentages most businesses use for their federal tax returns.
| Year | 3-Year | 5-Year | 7-Year | 10-Year | 15-Year | 20-Year |
|---|---|---|---|---|---|---|
| 1 | 33.33% | 20.00% | 14.29% | 10.00% | 5.00% | 3.750% |
| 2 | 44.45% | 32.00% | 24.49% | 18.00% | 9.50% | 7.219% |
| 3 | 14.81% | 19.20% | 17.49% | 14.40% | 8.55% | 6.677% |
| 4 | 7.41% | 11.52% | 12.49% | 11.52% | 7.70% | 6.177% |
| 5 | — | 11.52% | 8.93% | 9.22% | 6.93% | 5.713% |
| 6 | — | 5.76% | 8.92% | 7.37% | 6.23% | 5.285% |
| 7 | — | — | 8.93% | 6.55% | 5.90% | 4.888% |
| 8 | — | — | 4.46% | 6.55% | 5.90% | 4.522% |
Key Takeaways from the MACRS Table
- Front-loaded deductions: For 5-year property, 52% of the cost is recovered in the first two years alone.
- Extra recovery year: Due to the half-year convention, each class has one more year than its name implies.
- Real property uses straight-line: The 27.5-year and 39-year classes do not use accelerated methods.
MACRS Depreciation Table (ADS — Straight-Line)
The Alternative Depreciation System uses the straight-line method over longer recovery periods. While ADS produces smaller annual deductions compared to GDS, it is required in specific situations and may be elected voluntarily for financial planning purposes. The following table shows ADS straight-line percentages under the half-year convention for personal property classes.
| Year | 5-Year ADS | 7-Year ADS (10 yr) | 10-Year ADS (15 yr) | 15-Year ADS (20 yr) | 20-Year ADS (25 yr) |
|---|---|---|---|---|---|
| 1 | 10.00% | 5.00% | 3.33% | 2.50% | 2.00% |
| 2 | 20.00% | 10.00% | 6.67% | 5.00% | 4.00% |
| 3 | 20.00% | 10.00% | 6.67% | 5.00% | 4.00% |
| 4 | 20.00% | 10.00% | 6.67% | 5.00% | 4.00% |
| 5 | 20.00% | 10.00% | 6.67% | 5.00% | 4.00% |
| 6 | 10.00% | 10.00% | 6.67% | 5.00% | 4.00% |
| 7–10 | — | 10.00% each | 6.67% each | 5.00% each | 4.00% each |
| 11 (last) | — | 5.00% | 6.67% | 5.00% | 4.00% |
| 12–16 | — | — | 3.33% (yr 16) | 5.00% each | 4.00% each |
| 17–21 | — | — | — | 2.50% (yr 21) | 4.00% each |
| 22–26 | — | — | — | — | 2.00% (yr 26) |
The ADS recovery periods are generally longer than GDS. For example, 7-year GDS property (such as office furniture) becomes 10-year property under ADS. The key trade-off: ADS produces more even deductions over a longer period, which can be advantageous for organizations that prefer predictable tax expense or that are required to use ADS for specific asset categories.
ADS Recovery Periods by GDS Class
- 5-year GDS property: 5 years under ADS (same period, straight-line method)
- 7-year GDS property: 10 years under ADS
- 10-year GDS property: 15 years under ADS
- 15-year GDS property: 20 years under ADS
- 20-year GDS property: 25 years under ADS
- 27.5-year residential: 30 years under ADS
- 39-year commercial: 40 years under ADS
Mid-Quarter Convention Depreciation Tables
When more than 40% of total depreciable personal property placed in service during a tax year is placed in service during the fourth quarter, the mid-quarter convention replaces the half-year convention for all personal property placed in service that year. This rule prevents taxpayers from bunching asset purchases in the last months of the year to claim a full half-year of depreciation.
Under the mid-quarter convention, each asset is treated as placed in service at the midpoint of the quarter in which it was actually placed in service. Assets placed in Q1 receive 10.5 months of first-year depreciation, while Q4 assets receive only 1.5 months.
5-Year Property — Mid-Quarter Convention (200% DB)
| Year | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 1 | 35.00% | 25.00% | 15.00% | 5.00% |
| 2 | 26.00% | 30.00% | 34.00% | 38.00% |
| 3 | 15.60% | 18.00% | 20.40% | 22.80% |
| 4 | 11.01% | 11.37% | 12.24% | 13.68% |
| 5 | 11.01% | 11.37% | 11.30% | 10.94% |
| 6 | 1.38% | 4.26% | 7.06% | 9.58% |
7-Year Property — Mid-Quarter Convention (200% DB)
| Year | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 1 | 25.00% | 17.85% | 10.71% | 3.57% |
| 2 | 21.43% | 23.47% | 25.51% | 27.55% |
| 3 | 15.31% | 16.76% | 18.22% | 19.68% |
| 4 | 10.93% | 11.97% | 13.02% | 14.06% |
| 5 | 8.75% | 8.87% | 9.30% | 10.04% |
| 6 | 8.74% | 8.87% | 8.85% | 8.73% |
| 7 | 8.75% | 8.87% | 8.86% | 8.73% |
| 8 | 1.09% | 3.34% | 5.53% | 7.64% |
Mid-Quarter Convention Trigger Rule
The mid-quarter convention is triggered when more than 40% of all personal property (by basis) placed in service during the tax year is placed in service during Q4 (October 1 – December 31).
Planning tip: If a company is approaching the 40% threshold, it may benefit from deferring Q4 purchases to the following January or accelerating them into Q3. Proper fixed asset tracking throughout the year helps identify when this threshold is at risk.
How to Calculate MACRS Depreciation
Calculating MACRS depreciation involves four steps: determine the depreciable basis, identify the property class, select the applicable convention, and apply the depreciation percentage from the IRS tables.
Worked Example: Office Furniture ($50,000)
Determine the depreciable basis
Cost of asset: $50,000. Depreciable basis = $50,000.
Identify the property class
Office furniture = 7-year property (200% declining balance).
Apply the applicable convention
Half-year convention applies (default).
Apply the MACRS percentage
Year 1: 14.29% x $50,000 = $7,145. Year 2: 24.49% x $50,000 = $12,245. By Year 3: 56.3% recovered.
| Year | MACRS Rate | Depreciation | Accumulated | Book Value |
|---|---|---|---|---|
| 1 | 14.29% | $7,145 | $7,145 | $42,855 |
| 2 | 24.49% | $12,245 | $19,390 | $30,610 |
| 3 | 17.49% | $8,745 | $28,135 | $21,865 |
| 4 | 12.49% | $6,245 | $34,380 | $15,620 |
| 5 | 8.93% | $4,465 | $38,845 | $11,155 |
| 6 | 8.92% | $4,460 | $43,305 | $6,695 |
| 7 | 8.93% | $4,465 | $47,770 | $2,230 |
| 8 | 4.46% | $2,230 | $50,000 | $0 |
Industry-Specific MACRS Depreciation Examples
MACRS depreciation calculations vary significantly across industries due to different asset types, property class assignments, and applicable conventions. The following worked examples illustrate how MACRS applies in manufacturing, healthcare, commercial real estate, and fleet management contexts.
Manufacturing: CNC Machine ($250,000, 7-Year Property)
A precision CNC machining center placed in service on April 15 falls into the 7-year property class under MACRS GDS. Using the 200% declining balance method with the half-year convention, the MACRS depreciation schedule is as follows.
| Year | MACRS Rate | Annual Deduction | Cumulative |
|---|---|---|---|
| 1 | 14.29% | $35,725 | $35,725 |
| 2 | 24.49% | $61,225 | $96,950 |
| 3 | 17.49% | $43,725 | $140,675 |
| 4–8 | 43.73% total | $109,325 total | $250,000 |
By the end of Year 3, 56.3% of the CNC machine's cost ($140,675) has been deducted. For a manufacturer in the 21% federal tax bracket, this translates to approximately $29,542 in tax savings within the first three years. With 2026 bonus depreciation at 20%, the manufacturer could also deduct an additional $50,000 (20% of $250,000) in Year 1, with MACRS applied to the remaining $200,000 basis.
Healthcare: MRI Scanner ($1.5M, 5-Year Property with ADS Requirement)
Medical imaging equipment such as MRI scanners is classified as 5-year property under MACRS GDS. However, if the scanner is used in a tax-exempt hospital or financed with tax-exempt bonds, ADS is required. This example compares both scenarios.
| Year | GDS Deduction | ADS Deduction | Difference |
|---|---|---|---|
| 1 | $300,000 | $150,000 | $150,000 |
| 2 | $480,000 | $300,000 | $180,000 |
| 3 | $288,000 | $300,000 | ($12,000) |
| 4 | $172,800 | $300,000 | ($127,200) |
| 5 | $172,800 | $300,000 | ($127,200) |
| 6 | $86,400 | $150,000 | ($63,600) |
Under GDS, the healthcare organization recovers $780,000 (52%) in the first two years. Under ADS, it recovers only $450,000 (30%) in the same period. The present value difference at a 5% discount rate exceeds $40,000 in favor of GDS. Healthcare organizations that can use GDS should do so whenever eligible.
Real Estate: Commercial Office Building ($5M, 39-Year with Cost Segregation)
A $5 million commercial office building placed in service defaults to 39-year straight-line depreciation, yielding approximately $128,205 per year (using the mid-month convention). However, a cost segregation study can reclassify significant portions of the building cost to shorter MACRS recovery periods.
| Component | MACRS Class | Reclassified Amount | Year 1 Deduction |
|---|---|---|---|
| Electrical, security, carpeting | 5-year | $500,000 (10%) | $100,000 |
| Cabinetry, specialized fixtures | 7-year | $350,000 (7%) | $50,015 |
| Parking, landscaping, sidewalks | 15-year | $650,000 (13%) | $32,500 |
| Remaining structure | 39-year | $3,500,000 (70%) | $89,744 |
| Total | — | $5,000,000 | $272,259 |
Without cost segregation, the Year 1 deduction would be approximately $128,205. With cost segregation, the Year 1 deduction increases to $272,259 — a 112% increase. At a 21% corporate tax rate, this represents an additional $30,251 in first-year tax savings. Over the first five years, the cumulative tax benefit of cost segregation for this property exceeds $120,000.
Fleet Management: Delivery Vehicles ($45,000 Each, 5-Year Property)
Light-duty delivery vehicles (under 6,000 lbs gross vehicle weight) are classified as 5-year property. However, luxury automobile depreciation limits (IRC Section 280F) cap the annual deduction for passenger vehicles. For a $45,000 delivery van placed in service in 2026 with 20% bonus depreciation, the depreciation schedule depends on whether the vehicle exceeds 6,000 lbs GVW.
| Year | Under 6,000 lbs (Sec. 280F Limits) | Over 6,000 lbs (No Limits) |
|---|---|---|
| 1 | $12,400 (capped) | $18,000 |
| 2 | $19,800 (capped) | $14,400 |
| 3 | $11,900 (capped) | $8,640 |
| 4–6 | $900/year until recovered | $3,960 total |
Fleet managers should note that vehicles exceeding 6,000 lbs GVW (such as full-size cargo vans, pickup trucks, and SUVs) are exempt from the Section 280F luxury auto limits, enabling full MACRS depreciation on the entire cost basis. This distinction can result in significantly faster cost recovery for heavier commercial vehicles.
MACRS GDS vs. ADS (Alternative Depreciation System)
MACRS provides two depreciation systems: the General Depreciation System (GDS) and the Alternative Depreciation System (ADS). GDS is the default and is used for most business property. ADS uses longer recovery periods and the straight-line method.
When ADS Is Required
- Property used predominantly (more than 50%) outside the United States
- Tax-exempt use property (property leased to tax-exempt entities)
- Tax-exempt bond-financed property
- Property imported from certain countries with trade restrictions
| Property Type | GDS Period | ADS Period |
|---|---|---|
| Automobiles & light trucks | 5 years | 5 years |
| Office furniture | 7 years | 10 years |
| Land improvements | 15 years | 20 years |
| Nonresidential real property | 39 years | 40 years |
Half-Year Convention vs. Mid-Quarter Convention
MACRS depreciation conventions determine how much depreciation is allowed in the year an asset is placed in service and the year it is disposed of.
Half-Year Convention
The default convention for most personal property. Treats all assets as placed in service at the midpoint of the year, regardless of actual date.
Effect: First-year depreciation is exactly half of a full year.
Mid-Quarter Convention
Required when more than 40% of personal property is placed in service in Q4. Prevents bunching purchases in December.
Effect: Q1 assets get 87.5% of a full year; Q4 assets get only 12.5%.
Section 179 and Bonus Depreciation
Section 179 and bonus depreciation both allow businesses to accelerate cost recovery beyond standard MACRS schedules. Understanding how all three provisions work together is essential for optimal tax planning.
Bonus Depreciation Phase-Down
| Tax Year | Bonus Rate | Impact |
|---|---|---|
| 2022 and prior | 100% | Full first-year deduction |
| 2023 | 80% | 20% remains for MACRS |
| 2024 | 60% | 40% remains for MACRS |
| 2025 | 40% | 60% remains for MACRS |
| 2026 | 20% | 80% remains for MACRS |
| 2027+ | 0% | Full MACRS only |
Organizations with significant capital expenditure programs should evaluate the interplay between Section 179, bonus depreciation, and regular MACRS depreciation annually. A thorough fixed asset inventory helps ensure that all qualifying assets are properly identified and classified for tax benefit.
MACRS Depreciation and Cost Segregation
One of the most effective strategies for maximizing MACRS depreciation deductions is a cost segregation study. Commercial buildings default to the 39-year recovery period, but many building components qualify for shorter MACRS property classes.
- 5-year property: Specialized electrical, carpeting, decorative fixtures, security systems
- 7-year property: Built-in cabinetry, specialized storage, process-related equipment
- 15-year property: Parking lots, sidewalks, landscaping, site lighting, fencing
Typically, 20–40% of a commercial building's cost can be reclassified to shorter recovery periods. CPCON's cost segregation studies combine engineering analysis with IRS compliance expertise to identify every qualifying component.
MACRS Depreciation for Rental Property
Rental property depreciation follows specific MACRS rules that differ from personal property depreciation. The recovery period depends on whether the property is residential or commercial, and real property always uses the mid-month convention rather than the half-year convention.
Residential Rental Property (27.5-Year)
Residential rental property — defined as a building where 80% or more of gross rental income comes from dwelling units — is depreciated over 27.5 years using the straight-line method. The mid-month convention means that the first-year deduction depends on which month the property is placed in service.
| Month Placed in Service | Year 1 Rate | Year 1 Deduction ($500K basis) |
|---|---|---|
| January | 3.485% | $17,425 |
| April | 2.576% | $12,880 |
| July | 1.667% | $8,335 |
| October | 0.758% | $3,790 |
| Years 2–27 | 3.636% | $18,180/year |
Commercial Rental Property (39-Year)
Nonresidential real property (office buildings, retail space, warehouses, industrial facilities) is depreciated over 39 years using the straight-line method with the mid-month convention. The annual deduction for a $2 million commercial property is approximately $51,282 per year after the first year.
Cost Segregation Opportunities for Landlords
Rental property owners — both residential and commercial — can significantly accelerate depreciation deductions through cost segregation studies. For a $1 million residential rental property, a typical cost segregation study identifies 15–25% of the cost ($150,000–$250,000) as personal property eligible for 5-, 7-, or 15-year MACRS recovery. Instead of depreciating the entire $1 million over 27.5 years, the landlord accelerates a significant portion into shorter recovery periods.
Rental Property Depreciation: Key Rules
- Land is not depreciable: Only the building and improvements are depreciable. Allocate purchase price between land and building (typically 20–30% for land).
- Mid-month convention applies: Real property is treated as placed in service at the midpoint of the month, not the midpoint of the year.
- Passive activity rules apply: Rental depreciation deductions are generally limited to offsetting rental income unless the taxpayer qualifies as a real estate professional.
- Depreciation recapture (Section 1250): When rental property is sold, accumulated depreciation is recaptured at a maximum rate of 25%.
Common MACRS Depreciation Mistakes and How to Avoid Them
Errors in MACRS depreciation calculations can result in understated deductions (leaving tax savings on the table) or overstated deductions (triggering IRS scrutiny). The following mistakes are among the most common issues CPCON encounters during fixed asset accounting reviews.
Mistake #1: Wrong Property Class Assignment
Assigning an asset to the wrong MACRS property class is the single most costly depreciation error. For example, classifying manufacturing equipment as 5-year property instead of 7-year, or treating land improvements as part of the building (39-year) instead of 15-year property.
Prevention: Maintain a detailed fixed asset register with IRS Asset Class codes (from IRS Publication 946) for every capitalized item. Conduct periodic reviews to verify class assignments, especially after acquisitions.
Mistake #2: Forgetting the Mid-Quarter Convention Trigger
When more than 40% of personal property basis is placed in service in Q4, the mid-quarter convention applies to all personal property placed in service that year. Failing to test for this threshold results in incorrect depreciation for every asset placed in service during the year.
Prevention: Run the 40% test quarterly. Before approving any Q4 capital expenditure, calculate whether it will trigger the mid-quarter convention. If so, consider deferring the purchase to January or accelerating it into Q3.
Mistake #3: Not Considering Cost Segregation
Many organizations depreciate entire commercial buildings over 39 years without performing a cost segregation study. Depending on the building type and use, 20–40% of building cost can typically be reclassified to 5-, 7-, or 15-year property — a difference that can generate six-figure tax deferrals in the first five years.
Prevention: Evaluate every commercial property acquisition, construction, or renovation exceeding $1 million for cost segregation potential. The study fee typically pays for itself many times over.
Mistake #4: Missing Bonus Depreciation Phase-Down Changes
The Tax Cuts and Jobs Act bonus depreciation has been phasing down by 20 percentage points per year since 2023. Organizations that apply the wrong year's bonus rate will either overstate or understate their Year 1 deduction.
Prevention: Update depreciation policies and software settings annually to reflect the current bonus rate (20% for 2026, 0% for 2027+). Verify that any automatic calculations in the fixed asset system use the correct year's percentage.
Mistake #5: Depreciating Non-Depreciable Assets
Land, inventory, and certain intangible assets are not depreciable under MACRS. A common error is failing to properly allocate the purchase price of real property between land (non-depreciable) and building (depreciable), or capitalizing items that should be expensed under the de minimis safe harbor.
Prevention: For real property acquisitions, obtain an appraisal or use the property tax assessed value ratio to allocate between land and building. Review the de minimis safe harbor election ($2,500 or $5,000 per invoice/item) annually.
Organizations concerned about the accuracy of their MACRS depreciation schedules should consider a comprehensive ASC 360 compliance review to identify impairment indicators and verify that all long-lived assets are properly classified and depreciated.
Frequently Asked Questions
What is the MACRS depreciation method?
MACRS is the primary tax depreciation method used in the United States. It allows businesses to recover the cost of tangible property over a specified recovery period through annual deductions, using either GDS or ADS.
What are the MACRS property classes?
MACRS classifies assets into recovery periods: 3-year (specialized tools), 5-year (vehicles, computers), 7-year (office furniture), 10-year (water transportation), 15-year (land improvements), 20-year (farm buildings), 27.5-year (residential rental), and 39-year (commercial real property).
What is the difference between GDS and ADS?
GDS uses shorter recovery periods and accelerated methods, producing larger early deductions. ADS uses longer periods and straight-line, spreading deductions evenly. ADS is required for tax-exempt use property and property used predominantly outside the United States.
How does Section 179 interact with MACRS?
Section 179 is applied first, reducing the depreciable basis. Bonus depreciation is applied next to the remaining basis. Regular MACRS depreciation is then calculated on whatever remains.
What is the half-year convention?
The half-year convention treats all property as placed in service at the midpoint of the year, allowing only half the first-year depreciation. If more than 40% of property is placed in service in Q4, the mid-quarter convention must be used instead.
How to calculate MACRS depreciation in Excel?
Excel does not include a built-in MACRS function, but the calculation is straightforward. Create a reference table with IRS depreciation percentages for each property class (from IRS Publication 946, Tables A-1 through A-20). In Column A, list the years. In Column B, enter the MACRS percentage for each year. In Column C, use the formula =CostBasis*B2 to calculate each year's depreciation. Use VLOOKUP or INDEX/MATCH to pull the correct percentage based on property class and year. For organizations with large asset registers, dedicated fixed asset management software is more efficient than spreadsheet-based tracking.
What is the MACRS depreciation rate for 5 year property?
Under the half-year convention using GDS (200% declining balance), the MACRS depreciation rates for 5-year property are: Year 1 = 20.00%, Year 2 = 32.00%, Year 3 = 19.20%, Year 4 = 11.52%, Year 5 = 11.52%, Year 6 = 5.76%. These percentages always total 100%. Common 5-year property includes automobiles, light trucks, computers, copiers, and certain manufacturing equipment.
Is MACRS the same as double declining balance?
MACRS is not identical to double declining balance (DDB), though it uses DDB as a component. For 3-, 5-, 7-, and 10-year personal property, MACRS GDS applies the 200% declining balance method (mathematically equivalent to DDB) and automatically switches to straight-line in the year straight-line produces a larger deduction. Additionally, MACRS incorporates specific conventions (half-year or mid-quarter) and always depreciates to a zero salvage value, whereas standard DDB accounting methods may incorporate salvage value.
Can you switch from MACRS to straight line?
A taxpayer may irrevocably elect straight-line depreciation under GDS at the time an asset is placed in service. However, once MACRS accelerated depreciation has begun for an asset, switching to straight-line requires filing IRS Form 3115 (Application for Change in Accounting Method). This is classified as a change in method of accounting and must be approved by the IRS. An alternative is to elect ADS at the outset, which provides straight-line depreciation over the longer ADS recovery period. Consult a tax advisor before making depreciation method elections, as they cannot be easily reversed.
