Calculation Method

You can use the Accelerated Cost Recovery System (ACRS) method to compute the tax depreciation deduction for most tangible depreciable property that you place in service after 1980 but before 1987. Cost recovery methods and period are the same for both new and used property. The system does not use the asset's salvage value to compute ACRS allowances.

ACRS standard depreciation uses only one method of computation, the current year to date (C). This method uses this equation:

((Cost - (accumulated depreciation)) * (fixed percent))/ (number of normal periods) = (period depreciation)