ACRS

E1029410

ACRS is the Accelerated Cost Recovery System, a U.S. tax depreciation method introduced in the early 1980s to allow faster write-offs of capital investments.

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Statements (36)

Predicate Object
instanceOf United States federal tax provision
tax depreciation system
abbreviationOf Accelerated Cost Recovery System NERFINISHED
administeredBy Internal Revenue Service NERFINISHED
appliesTo business property
capital investments
most tangible property placed in service after 1980 and before MACRS adoption
tangible depreciable property
category capital cost recovery
country United States of America
surface form: United States
effectiveFromTaxYear 1981
feature class lives assigned by statute rather than actual useful life
front-loaded depreciation deductions
shortened cost recovery periods compared to prior law
fullName Accelerated Cost Recovery System NERFINISHED
impact accelerated timing of tax deductions for depreciation
temporary reduction of taxable income in early asset years
introducedBy United States Congress NERFINISHED
introducedIn early 1980s
jurisdiction United States federal income tax
legalBasis Economic Recovery Tax Act of 1981 NERFINISHED
purpose accelerate depreciation deductions
encourage capital investment
reduce taxable income in early years of an asset’s life
relatedTo Internal Revenue Code NERFINISHED
MACRS NERFINISHED
capital expenditure
depreciation deduction
replaced Asset Depreciation Range system NERFINISHED
prior useful-life based depreciation rules
replacedBy MACRS NERFINISHED
Modified Accelerated Cost Recovery System NERFINISHED
taxType income tax
timePeriod 1980s U.S. tax law reforms
uses accelerated depreciation methods
statutory recovery periods

Referenced by (1)

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