How To Depreciate Property›2025 Returns›4. Figuring Depreciation Under MACRS
Which Depreciation Method Applies?
2025 Publ 946 (PDF) · 2026-10-03 edition · updated 2026-10-04 · United States
Terms you may need to know (see Glossary):
Declining balance method Listed property Nonresidential real property Placed in service Property class Recovery period Residential rental property Straight line method Tax exempt
MACRS provides three depreciation methods under GDS and one depreciation method under ADS.
The 200% declining balance method over a GDS recovery period.
The 150% declining balance method over a GDS recovery period.
34 Chapter 4 Figuring Depreciation Under MACRS Publication 946 (2025)
The straight line method over a GDS recovery period.
The straight line method over an ADS recovery period.
Caution: For property placed in service before 1999, you could have elected the 150% declining balance method using the ADS recovery periods for certain property classes. If you made this election, continue to use the same method and recovery period for that property.
Table 4-1 lists the types of property you can depreciate under each method. It also gives a brief explanation of the method, including any benefits that may apply.
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