MACRS Depreciation Calculator
Build a US tax depreciation schedule under MACRS (GDS): pick the property class, method and convention and get each year's percentage and deduction, matching the IRS Publication 946 tables.
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Purchase price + sales tax, freight, installation.
Reduces the basis MACRS applies to.
Mid-quarter is required if over 40% of the year's property was placed in service in Q4.
How to use the MACRS Depreciation Calculator
- Enter the cost basis and the business-use percentage.
- Choose the property class; real property automatically uses straight-line and mid-month.
- Pick the method and convention: half-year unless the mid-quarter rule applies.
- Subtract any Section 179 or bonus already deducted on the same asset.
- Calculate to see the depreciation for every year, then copy or download the schedule.
MACRS half-year convention table (GDS)
Percent of the depreciable basis deducted each tax year (IRS Publication 946, Table A-1).
| Year | 3-year | 5-year | 7-year | 10-year | 15-year | 20-year |
|---|---|---|---|---|---|---|
| 1 | 33.33 | 20.00 | 14.29 | 10.00 | 5.00 | 3.750 |
| 2 | 44.45 | 32.00 | 24.49 | 18.00 | 9.50 | 7.219 |
| 3 | 14.81 | 19.20 | 17.49 | 14.40 | 8.55 | 6.677 |
| 4 | 7.41 | 11.52 | 12.49 | 11.52 | 7.70 | 6.177 |
| 5 | 11.52 | 8.93 | 9.22 | 6.93 | 5.713 | |
| 6 | 5.76 | 8.92 | 7.37 | 6.23 | 5.285 | |
| 7 | 8.93 | 6.55 | 5.90 | 4.888 | ||
| 8 | 4.46 | 6.55 | 5.90 | 4.522 | ||
| 9 | 6.56 | 5.91 | 4.462 | |||
| 10 | 6.55 | 5.90 | 4.461 | |||
| 11 | 3.28 | 5.91 | 4.462 |
15-year property continues at about 5.9% through year 15 and 2.95% in year 16; 20-year property at about 4.46% through year 20 and 2.231% in year 21.
How the percentages are built
- Declining balance: rate = 200% (or 150%) ÷ recovery period, applied to the remaining basis each year.
- Switch to straight-line in the first year that remaining basis ÷ remaining recovery period gives a larger deduction.
- Half-year: half a year in year 1 and in the final year. Mid-quarter: 87.5%, 62.5%, 37.5% or 12.5% of a year in year 1 for Q1–Q4. Mid-month: (12 − month + 0.5) ÷ 12 of a year for real property.
This calculator generates the percentages with these rules and the same rounding as the IRS tables. It covers GDS only; the Alternative Depreciation System (ADS) uses longer, straight-line periods.
Frequently asked questions
What is MACRS depreciation?
The Modified Accelerated Cost Recovery System is the method the IRS requires for most business property placed in service after 1986. Each asset is assigned a recovery period (class), a method (200% or 150% declining balance, or straight-line) and a convention, which together produce the yearly percentages in IRS Publication 946.
What is the MACRS rate for 5-year property?
Under the half-year convention, 5-year property is depreciated 20%, 32%, 19.2%, 11.52%, 11.52% and 5.76% over six tax years. 7-year property uses 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, 8.92%, 8.93% and 4.46%.
Why does 5-year property take 6 years?
The half-year convention treats the asset as placed in service in the middle of the first year, so only half a year of depreciation is allowed in year 1 and the remaining half year falls in year 6.
When do I have to use the mid-quarter convention?
If more than 40% of the depreciable basis of all property you placed in service during the year (excluding real property) was placed in service in the last three months of the tax year, you must use the mid-quarter convention for all of that year's property.
How are rental buildings depreciated?
Residential rental property is depreciated straight-line over 27.5 years and nonresidential real property over 39 years, both with the mid-month convention: the first year counts from the middle of the month the property was placed in service. Land is never depreciable.
Which method should I choose?
The GDS default is 200% declining balance for 3, 5, 7 and 10-year property and 150% for 15 and 20-year property. You can elect 150% or straight-line for a whole class to spread deductions more evenly; farm property placed in service after 2017 generally uses 200% too.
What is the difference between MACRS and book depreciation?
MACRS is for US tax returns and ignores salvage value. Book depreciation for financial statements usually uses the asset's estimated useful life and salvage value. For book methods use the general Depreciation Calculator.
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