Pre-ACRS Deduction

For up to $10,000 of qualifying personal property placed in service during a taxable year prior to 1981, you may be eligible for an additional first-year depreciation deduction of twenty percent ($2,000 maximum). These assets need to be depreciated over 6 years or more using a straight-line, declining-balance, sum-of-the-years' digits, own calculation, or custom calculation depreciation method.

These depreciation deduction rules were repealed by the Economic Recovery Tax Act of 1981, effective December 31, 1980.