ACRS Methods

The Accelerated Cost Recovery System (ACRS) is an IRS-prescribed method for recovering the cost of personal and real property placed in service from 1981 through 1986. ACRS is a modification of the Asset Depreciation Range (ADR) method used in the 1970s. It was created by the Economic Recovery Tax Act of 1981, which required the use of ACRS or alternate ACRS for assets placed in service from 1981 through July 1986. ACRS may have been elected for qualifying assets through December 31, 1986. For tax purposes, assets acquired after 1986 (other than transitional property) must use one of the MACRS methods.

The application supports three ACRS methods: ACRS table; straight-line, alternate ACRS formula; and straight-line, alternate ACRS table. The two straight-line, alternate ACRS methods are essentially the same, except that rounding in the IRS tables produces small differences from the formula calculation in the recovery amount per period.