MACRS Declining-Balance Depreciation

The equation for calculating MACRS 200% declining-balance depreciation is:

(Acquisition Cost - Accumulated Depr.)

X

200% Recovery Period

=

Annual Depr.

 

Example:

Acquired Value:	$1,000
Recovery Period:	5 Years

 

Year 1:

$1,000

X

200% 5

X

1 * 2

=

$200

* Multiply by ½ in the year you placed the asset in service if you're using the half-year convention.

Year 2:

($1,000 - $200)

X

200% 5

=

$320