Straight-Line, Alternate ACRS (Methods SA and ST)

As its name implies, straight-line, alternate ACRS depreciation combines features of straight-line and regular ACRS table depreciation.

Like straight-line depreciation, the alternate straight-line method yields a uniform yearly depreciation amount. Whereas straight-line depreciation is based on the estimated life of the asset, alternate straight-line depreciation uses specific recovery periods (defined by law) similar to those used by ACRS table depreciation.

Under the federal tax law, if you use the alternate straight-line method for a personal property asset, you must apply the alternate straight-line method to all assets of the same class placed in service in the same tax year. You can use a different method for assets of the same class in the next year or for assets of a different class in the same tax year. This rule does not apply to real property. For real property, you choose a depreciation method on a property-by-property basis, not on a class-by-class basis.

The system can calculate straight-line, alternate ACRS depreciation either by using a formula that divides the asset's basis by its recovery period or by using IRS tables. The difference between the two methods in the recovery amount per period is due to rounding in the tables.