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BookkeepKit

MACRS Depreciation Calculator

Get the year-by-year tax depreciation for an asset under the General Depreciation System, using the percentage tables from IRS Publication 946, with every rate shown.

Asset

Office furniture, fixtures, most business equipment.

Depreciation schedule

Schedule
YearRateDeductionAccumulatedRemaining basis
202614.29%$1,429.00$1,429.00$8,571.00
202724.49%$2,449.00$3,878.00$6,122.00
202817.49%$1,749.00$5,627.00$4,373.00
202912.49%$1,249.00$6,876.00$3,124.00
20308.93%$893.00$7,769.00$2,231.00
20318.92%$892.00$8,661.00$1,339.00
20328.93%$893.00$9,554.00$446.00
20334.46%$446.00$10,000.00$0.00

How it's calculated

  1. Depreciable basis = cost $10,000.00 × business use 100% = $10,000.00.
  2. 7-year property uses the 200% declining balance method, switching to straight line when that gives a larger deduction, with the half-year convention.
  3. Each year's rate comes from IRS Publication 946, Appendix A (Table A-1). Deduction = depreciable basis × rate; the last year takes the cents left over.
  4. The mid-quarter convention is required when more than 40% of the depreciable basis of property placed in service during the year (other than real property) was placed in service in the last three months.

How it works

  1. 1

    Enter the basis

    What the asset cost, plus delivery and installation, then the business-use share and any Section 179 or bonus depreciation already taken.

  2. 2

    Pick the class and convention

    The recovery period (5-year for computers and vehicles, 7-year for furniture…) and half-year, mid-quarter or, for buildings, the month placed in service.

  3. 3

    Read the schedule

    Each year's rate from the IRS table, the deduction, and the remaining basis. Download it as Excel or PDF.

How MACRS works

The Modified Accelerated Cost Recovery System is the depreciation method for most business property placed in service after 1986. Personal property (3- to 20-year classes) uses the 200% or 150% declining balance method switching to straight line, with a half-year or mid-quarter convention. Residential rental and nonresidential real property use straight line over 27.5 or 39 years with the mid-month convention.

Source of the rates

Rates come from IRS Publication 946, Appendix A: Table A-1 (half-year), Tables A-2 to A-5 (mid-quarter), Table A-6 (residential rental) and Table A-7a (nonresidential real property). Salvage value is ignored under MACRS.

Booking it

Tax depreciation and book depreciation often differ. If your books follow MACRS, record each year's figure with a journal entry: debit Depreciation Expense, credit Accumulated Depreciation.

Frequently asked questions

Why are there more years than the recovery period?

Conventions treat the asset as placed in service partway through the first year, so the last partial year spills into one more tax year. A 5-year asset is depreciated over six tax years.

When is the mid-quarter convention required?

When more than 40% of the depreciable basis of the property you placed in service during the year (excluding real property) was placed in service in the last three months of the year. If so, pick the quarter each asset was placed in service.

Which class is my asset in?

Common ones: computers, vehicles and office equipment are 5-year; office furniture and fixtures are 7-year; land improvements are 15-year; residential rental buildings are 27.5-year; commercial buildings are 39-year. Publication 946 Appendix B has the full list.

Does it handle Section 179 and bonus depreciation?

Enter the amount already expensed in the Section 179 / bonus field, and the business-use percentage if the asset is also used personally. The remaining basis is depreciated with MACRS.

Why use the tables instead of a formula?

The IRS tables are what tax software and Form 4562 use. Computing the declining-balance switch yourself can drift by a few hundredths of a percent; the calculator uses the published percentages directly.

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