Accelerated Cost Recovery System
- It's a depreciation calculation method brought through the Economic Recovery Tax Act of 1981 that enables quicker recovery of costs for properties initiated after 1980 by attributing it a lesser lifespan than that previously sanctioned by the tax regulation
- The Accelerated Cost Recovery System was implemented to stimulate investment by speeding up cost depreciation.
- Businesses often use the Accelerated Cost Recovery System to reduce their taxable income through faster depreciation.
- Under the Accelerated Cost Recovery System, a building put into service in 1985 would have a decreased lifespan, thus making depreciation deductions larger and faster.
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