Definitions

ACRS consists of accelerated depreciation methods and an alternate ACRS method that could have been elected. The alternate ACRS method used a recovery percentage based on a modified straight line method. See the instructions for line 16 for more information. For a complete discussion of ACRS, see Pub. 534.

Modified Accelerated Cost Recovery System The Modified Accelerated Cost Recovery System (MACRS) is the current method of accelerated asset depreciation required by the tax code. Under MACRS, all assets are divided into classes which dictate the number of years over which an asset’s cost will be recovered. Each MACRS class has a predetermined schedule which determines the percentage of the asset’s cost which is depreciated each year. For more information, see Part III. MACRS Depreciation , later. For a complete discussion of MACRS, see chapter 4 of Pub. 946.

File a separate Form 4562 for each business or activity on your return for which Form 4562 is required. If you need more space, attach additional sheets. However, complete only one Part I in its entirety when computing your section 179 expense deduction. See the instructions for line 12, later.