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accelerated cost recovery system

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Financial Dictionary

Accelerated Cost Recovery System - ACRS

A system of depreciation introduced by the Economic Recovery Tax Act of 1981. ACRS depreciation is based on recovery periods instead of useful life. These periods were predetermined by the IRS.

Investopedia Commentary

The modified accelerated cost recovery system (MACRS) replaced ACRS for property placed into service after 1986.

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See also: Adjusted Basis, Adjusted Cost Base, Declining Balance Method, Depreciation, Internal Revenue Service - IRS, Modified Accelerated Cost Recovery System - MACRS, Tax Reform Act of 1986, Useful Life

Also spelled: ACRS

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Legal Dictionary

Main Entry: Accelerated Cost Recovery Sys·tem
Function: noun
: a method of calculating depreciation introduced in the Economic Recovery Tax Act of 1981 that results in faster recovery of costs for property put into service after 1980 by assigning it a shorter useful life than that previously allowed by the tax code
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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