Part II

7. Cost or other basis* . . . . . . . . . . . . . . $
8. Business/investment use . . . . . . . . . %
9. Multiply line 7 by line 8 . . . . . . . . . . . . . . . . $
10. Total claimed for section 179 deduction and other items . . . . . . . . . . . . . . . . . . . . . . $
11. Subtract line 10 from line 9. This is your tentative basis for depreciation . . . . . . . . $
12. Multiply line 11 by the applicable percentage if the special depreciation allowance applies. This is your special depreciation allowance. Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance . . . . . . . . . . . . . . . . . . . . $
13. Subtract line 12 from line 11. This is your basis for depreciation . . . . . . . . . . . . . . . . .
14. Depreciation rate (from line 6) . . . . . . . . .
15. Multiply line 13 by line 14. This is your MACRS depreciation deduction . . . . . . . $

• If real estate, do not include cost (basis) of land.

The following example shows how to figure your MACRS depreciation deduction using the percentage tables and the MACRS Worksheet.

Example. You bought office furniture (7-year property) for $10,000 and placed it in service on August 11, 2025. You use the furniture only for business. This is the only property you placed in service this year. You did not elect a section 179 deduction and the property is not qualified property for purposes of claiming a special depreciation allowance, so your property’s unadjusted basis is its cost, $10,000. You use GDS and the half-year convention to figure your depreciation. You refer to the MACRS Percentage Table Guide in Appendix A and find that you should use Table A-1. Multiply your property’s unadjusted basis each year by the percentage for 7-year property given in Table A-1. You figure your depreciation deduction using the MACRS Worksheet as follows.

MACRS Worksheet Keep for Your Records