MA200 Depreciation

MACRS Formula 200 Plus 168 depreciation (MA200) is similar to MACRS Formula 200 depreciation (MF200). The difference is that an additional 168 Allowance % is taken in the first year for MA200.

Note: 100% bonus is available for qualified assets placed in service:
- between 9/28/2017 and 12/31/2022
- on or after 1/20/2025

Note: The 168 Extra feature allows you to use a 168 Allowance % not valid for federal purposes for assets placed in service in years 2023 and later.

MA200, like MF200, is similar to declining-balance depreciation. It uses the half-year averaging convention for personal property (if the midquarter convention does not apply). It switches to straight-line depreciation when the result is equal to or greater than the declining-balance calculation.

First, the 168 Allowance is calculated:

Depreciable Basis X 30% = 168 Allowance

Then, the 168 Allowance is subtracted from the depreciable basis to calculate the annual depreciation for the first year:

Depr. Basis - 168 Allowance

Estimated Life in Years

1 *

Annual Depr.

* In the placed-in-service year, MACRS personal property uses the half-year averaging convention, which allows a half-year's depreciation in the year of acquisition (provided that the midquarter convention does not apply).

Year 2 and later (until the switch to straight-line):

Depr. Basis * - Accum. Depr.

Estimated Life

Annual Depr.

* In the second year, the calculation begins with the asset’s depreciable basis after deducting the 168 Allowance.

Here’s an example:

Acquired Value:	$16,000
Recovery Period:	5 Years
Salvage Value:	$1,000
Placed-in-Service Date:	11/01/2001

Year 1:

First, the 168 Allowance is calculated:

$16,000 X 30% = $4,800

Then, the 168 Allowance is subtracted from the $16,000 to calculate the depreciable basis:

$16,000 - 4,800 = $11,200

$11,200

$2,240

Year 2:

$11,200 - $2,240

$3,584

Year 3:

$11,200 - $5824

$2,150.40

Year 4:

$11,200 - $7,974.40

$1,290.24

Year 5:

$11,200 - $9,264.64

1.5

$1,290.24

Notice that in year 5 the calculation switches to straight-line depreciation, using the following formula:

Acquisition Cost - Accumulated Depr.

Remaining Life

Annual Depr.

Because you have already taken 3 ½ years of depreciation, the remaining life is 1.5 years.

Year 6:

$11,200 - $10,554.88

0.5

$645.12

Year 6 is the last year of the asset's life. The asset receives only a half-year of depreciation because of the half-year averaging convention.

Note: When using the MACRS Formula depreciation method, you recover the asset's full acquisition value, unlike declining-balance depreciation, which does not recover the salvage value.