MACRS * Macrs depreciation * Modified accelerated cost recovery system * Cost segregation * Straight line

MACRS. What is it, and how can it help my company?

MACRS depreciation, also known as Modified Accelerated Cost Recovery System, is the current method of accelerated (not straight line) depreciation condoned by the IRS today. We will look at your asset spreadsheet and use the IRS depreciation calculator, or table, and work up a cost segregation study for you.

Not sure what is meant by MACRS, or Modified Accelerated Cost Recovery System? Not many CPA's use MACRS depreciation. Your CPA is probably using the straight line method of depreciation on your assets. If you want to use an accelerated method, you have to have an engineering based cost segregation study done. Using this method, every asset will be categorized in an easy to read spreadsheet and then our engineers will use their calculator and IRS table to produce a cost segregation study for you.

Prior to MACRS, there was the accelerated cost recovery system. MACRS depreciation was introduced with the Tax Reform Bill of 1986. With this change came ability to accelerate deprecation on an asset faster than before which translated into an increase in the bottom line of the retainable income spreadsheet of a company. The straight line method calculator did not give the asset owner any benefit in the deposable income table. Cost segregation is the way for a business owner to reap tremendous tax benefit immediately, and the Modified Accelerated Cost Recovery System is the way to go about it.

Using MACRS, MACRS depreciation, or the Modified Accelerated Cost Recovery System instead of the straight line method is the preferred way to show accelerated depreciation on your asset spreadsheet. Let CPC tune up the IRS recommended depreciation table, or calculator, to work up a cost segregation study for your company.