Guides

MACRS Depreciation Tables (Half-Year) From IRS Pub 946 — The MACRS half-year convention percentages for 3, 5, 7, 10, 15 and 20-year property from IRS Publication 946 Table A-1, with how to use them.
MACRS Example: $10,000 of 7-Year Property, Year by Year — Worked example from Pub 946: $10,000 of 7-year property placed in service with the half-year convention, depreciated over 8 tax years.
Mid-Quarter Convention: The 40% Test With an Example — If more than 40% of the year's depreciable basis was placed in service in the last 3 months, every personal-property asset that year uses the mid-quarter convention.
Depreciation in the Year You Sell an Asset — How much MACRS depreciation you get in the year of disposal under half-year, mid-quarter and mid-month conventions, and how the gain and §1245 recapture work.
Book vs Tax Depreciation: Why the Numbers Differ — Books depreciate straight-line over useful life; taxes use MACRS, §179 and bonus. An example where a $50,000 machine is $50,000 of tax depreciation and much less on the books.
MACRS Property Classes: What Goes Where — 3, 5, 7, 10, 15, 20-year property, qualified improvement property, residential rental and nonresidential real property, software and land — with examples.

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