alternative depreciation system

How to Calculate Depreciation Under ADS?

The process involves the following steps:
1. Determine the Property Class: Identify the property class to which the asset belongs.
2. Recovery Period: Refer to IRS guidelines to determine the appropriate recovery period for the asset under ADS.
3. Depreciation Method: Apply the straight-line method over the specified recovery period.
For example, if a commercial building depreciates over 39 years under MACRS, it might depreciate over 40 years under ADS.

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