ADS Calculation

ADS uses a straight-line calculation over an asset's ADS life. This generally slows the rate of recovery as compared with other MACRS methods. Even MACRS real property, which already uses a straight-line calculation, is recovered more slowly using the asset's ADS life.

When electing a depreciation method of AD (MACRS straight-line), enter the asset's ADS life in both the Estimated Life field and the ADS Life field in the Tax book. The system uses the entry in the Estimated Life field for calculating depreciation in the Tax book, and the entry in the ADS Life field for setting defaults in other books where appropriate.