Modified Accelerated Cost Recovery System (MACRS)

This method of Depreciation is created after the Tax Reform Act, 1986. This is the current tax Depreciation system in United States. This is also an accelerated method of Depreciation. This method provides users with tables giving the useful lives of various assets and the Depreciation rates.
Some key points of MACRS method:
It is the only approved tax Depreciation system in the United States.
It automatically switches from DDB or DB to SL Depreciation.
It always depreciates to zero; that is, it assumes S = 0.
Recovery periods are specified by property classes.
Depreciation rates are tabulated.
The actual recovery period is 1 year longer due to the imposed half-year convention.
MACRS straight line Depreciation is an option, but recovery periods are longer than for regular MACRS