18:47
im premed idk why im here
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Simple English definitions for legal terms
Accelerated Cost Recovery System
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A quick definition of Accelerated Cost Recovery System:
Accelerated Cost Recovery System: A way of calculating how much an asset (like a machine or a building) is worth over time. It lets people recover the cost of the asset faster by saying it will be useful for a shorter amount of time than before. This system was used for assets put into service from 1981 to 1986 and was replaced by a newer system in 1986.
A more thorough explanation:
The Accelerated Cost Recovery System (ACRS) is an accounting method used to calculate asset depreciation. It allows for the faster recovery of costs by assigning the asset a shorter useful life than was previously permitted under the Internal Revenue Code.
For example, if a company purchases a machine for $10,000 and the useful life of the machine is 10 years, traditional depreciation would allow for a deduction of $1,000 per year. However, under ACRS, the company may be able to deduct a larger amount in the earlier years of the machine's life, resulting in a faster recovery of costs.
ACRS applies to property put into service from 1981 to 1986 and was replaced in 1986 by the Modified Accelerated Cost Recovery System (MACRS).