The Modified Accelerated Cost Recovery System, or MACRS, is the correct Depreciable Property Methods for most property.
Examples of MACRS:
- MACRS 3 year for Tractors
- MACRS 5 year for cutting of Timber
- MACRS 7 year for Office Furniture and any property that does not have a class life designated by law
- MACRS 10 year for Barges and Fruits Bearing Trees/Vines
- MACRS 15 year for improvements made directly to land like adding a fence or sidewalk
- MACRS 20 year for Farm Buildings
- MACRS 27.5 years for Residential Rental Property
- MACRS 39 years for Nonresidential Real Property, that is a retail motor fuels outlet placed in service before August 20, 1996.
For further information regarding depreciation please see IRS publication 946