terms 8 - ACC 307 FEDERAL TAXATION KEY TERMS FOR CHAPTER 8...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC 307 FEDERAL TAXATION KEY TERMS FOR CHAPTER 8
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 8 Accelerated cost recovery system (ACRS) A method in which the cost of tangible property is recovered over a prescribed period of time. Enacted by the Economic Recovery Tax Act (ERTA) of 1981 and substantially modified by the Tax Reform Act (TRA) of 1986(the modified system is referred to as MACRS), the approach disregards salvage value, imposes a period of cost recovery that depends upon the classification of the asset into one of various recovery periods, and prescribes the applicable percentage of cost that can be deducted each year. § 168. Additional first-year depreciation See Fifty percent additional first-year depreciation . Alternative depreciation system (ADS) A cost recovery system that produces a smaller deduction than would be calculated under ACRS or MACRS. The alternative system must be used in certain instances and can be elected in other instances. § 168(g). See also cost recovery allowance . Amortization
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

terms 8 - ACC 307 FEDERAL TAXATION KEY TERMS FOR CHAPTER 8...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online