What are the MACRS 5-year property depreciation rates?

IRS MACRS 200DB rates for 5-year property: Year 1: 20%, Year 2: 32%, Year 3: 19.2%, Year 4: 11.52%, Year 5: 11.52%, Year 6: 5.76%. Year 1 applies half-year convention.

What assets qualify as 5-year MACRS property?

Computers, software, automobiles, light trucks, SUVs, R&D equipment, and other specific property. 7-year property includes office furniture, machinery, equipment not assigned to another class.

How does MACRS differ from book depreciation?

MACRS is faster (front-loads depreciation for tax savings) and has prescribed rates by asset class. Book depreciation follows useful life and can be straight-line or other methods. The difference creates deferred tax liabilities.

MACRS 5-Year Property Depreciation Calculator

Calculate MACRS accelerated tax depreciation for 5-year property (computers, vehicles, equipment). Uses IRS double-declining balance switching to straight-line.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate MACRS accelerated tax depreciation for 5-year property (computers, vehicles, equipment). Uses IRS double-declining balance switching to straight-line. Use the macrs depreciation result to inform your calculation.

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MACRS 5-Year Property Depreciation Calculator

How to Use

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Frequently Asked Questions

What are the MACRS 5-year property depreciation rates?

What assets qualify as 5-year MACRS property?

How does MACRS differ from book depreciation?