MACRS depreciation calculator
Enter what the asset cost and its recovery period. You get the year-by-year MACRS schedule under the half-year convention, from the IRS percentage tables.
Method: GDS, 200% declining balance (150% for 15 and 20 years), half-year convention.
| Tax year | Rate | Depreciation | Book value at year end |
|---|---|---|---|
| Total | |||
How the MACRS schedule is worked out
Under the General Depreciation System, each class of property has a recovery period and a fixed percentage for each year. Multiply the asset’s cost basis by that year’s percentage and you have the year’s deduction. The percentages come from IRS Publication 946, Table A-1, which builds in the declining balance method and the switch to straight line when that gives more.
The half-year convention gives the first and last years half a year each, so a 7-year asset is depreciated over eight tax years. If more than 40% of the year’s purchases went into service in the last quarter, the mid-quarter convention applies instead, and real property uses the mid-month convention over 27.5 or 39 years. This calculator doesn’t cover those, or bonus depreciation and Section 179.
This is a planning tool, not tax advice. Confirm the class and method for your assets with your tax advisor.
Common questions
What is MACRS depreciation?
MACRS (Modified Accelerated Cost Recovery System) is the depreciation method the IRS requires for most business property placed in service in the US after 1986. It recovers an asset’s cost over a set recovery period using fixed percentages each year.
What is the half-year convention?
It treats every asset as placed in service in the middle of the year, so the first and last years get half a year of depreciation. That is why a 5-year asset is depreciated over six tax years.
When does the mid-quarter convention apply?
When more than 40% of the depreciable basis of property placed in service during the year was placed in service in the last three months. This calculator uses the half-year convention only.
Does this include bonus depreciation or Section 179?
No. It shows the regular MACRS schedule. Bonus depreciation and Section 179 expensing reduce the basis first; check with your tax advisor.
See it with your own assets
A demo run on an example from your industry. Or start the trial and look around on your own.