Straight-Line, Alternate ACRS Calculation

For assets using this alternate ACRS depreciation method, the recovery periods vary. Businesses can choose to use IRS-approved recovery periods that are different from those used for ACRS depreciation, as shown in the following table.

For method SA, the system uses a formula allowing 16.75% for the first year for a 3-year property, 33.33% for the second and third years, and 16.75% for the fourth year. Proportionate formulas are used for other recovery periods. For method ST, the percentages are built into the tables.

ACRS Recovery Periods for Personal Property:

ACRS Table	Straight-Line, Alternate ACRS
3 years	3, 5, or 12 years
5 years	5, 12, or 25 years
10 years	10, 25, or 35 years

 

ACRS Recovery Periods for Real Property:

Placed in Service	ACRS Table	Straight-Line, Alternate ACRS
Before 3/16/84	15 years	15, 35, or 45 years
3/16/84-5/8/85	18 years	18, 35, or 45 years
5/9/85-12/31/87	19 years	19, 35, or 45 years