C-1

MACRS, ADS, and ACRS Depreciation Methods Summary

Depreciation Method Table No.a

System Characteristics MACRS ADS MACRS ADS

MACRS & ADS Personal Property:1. Accounting convention

Half-year or mid-quarter

Half-year or mid-quarterb

   

  2. Life and methoda. 3-year, 5-year,

7-year, 10-yearb. 15-year, 20-year

200% DB or elect straight-line150% DB or elect straight-line

150% DB or elect straight-line150% DB or elect straight-lined

1, 2, 3, 4, 51, 2, 3, 4, 5

10, 11c

 3. Luxury automobile limitations

    6  

  Real Property:1. Accounting convention2. Life and method

a. Residential rental property

b. Nonresidential real property

Mid-month

27.5 years, straight-line39 years, straight-linee

Mid-month

40 years straight-line40 years straight-line

7

9

12

12

Characteristics ACRS

ACRSf Personal Property:1. Accounting convention2. Life and method

a. 3-year, 5-year, 10-year, 15-year

Half-year

150% DB or elect straight-line

  Real Property:1. Accounting convention2. Life

a. 15-year property

b. 18-year property

c. 19-year property

3. Methoda. All but low-income

housingb. Low-income housing

property

First of month or mid-month

Placed in service after 12/31/80 and before 3/16/84Placed in service after 3/15/84 and before 5/9/85Placed in service after 5/8/85 and before 1/1/87

175% DB or elect straight-line200% DB or elect straight-line

aAll depreciation tables in this appendix are based upon tables contained in Rev. Proc. 87-57, as amended.bGeneral and ADS tables are available for property lives from 2.5–50.0 years using the straight-line method. These tables are contained in Rev. Proc. 87-57 and are only partially reproduced here.cThe mid-quarter tables are available in Rev. Proc. 87-57, but are not reproduced here.dSpecial recovery periods are assigned certain MACRS properties under the alternative depreciation system.eA 31.5-year recovery period applied to nonresidential real property placed in service under the MACRS rules prior to May 13, 1993 (see Table 8).fACRS was effective for years 1981–1986. ACRS tables are no longer reproduced here.

CA P P E N D I X

MACRS TABLES

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C-2 Corporations ▶ Appendix C

. TABLE 1

General Depreciation System—MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Half-Year Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

If the Recovery Year Is:

And the Recovery Period Is:3-Year 5-Year 7-Year 10-Year 15-Year 20-Year

  The Depreciation Rate Is: 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 4.46210 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55 5.90 4.46111 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.28 5.91 4.46212 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.46113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46214 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.46115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46216 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.95 4.46117 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46218 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46119 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46220 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46121 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.231

.

.

... .

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.

......

...

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.

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..

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MACRS Tables ◀ Corporations C-3

. TABLE 2

General Depreciation System—MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Mid-Quarter (Property Placed in Service in First Quarter) Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

If the Recovery Year Is:

And the Recovery Period Is:3-Year 5-Year 7-Year 10-Year 15-Year 20-Year

  The Depreciation Rate Is: 1 . . . . . . 58.33 35.00 25.00 17.50 8.75 6.563 2 . . . . . . .27.78 26.00 21.43 16.50 9.13 7.000 3 . . . . . . .12.35 15.60 15.31 13.20 8.21 6.482 4 . . . . . . . 1.54 11.01 10.93 10.56 7.39 5.996 5 . . . . . . . . . . . . . . . . . . 11.01 8.75 8.45 6.65 5.546 6 . . . . . . . . . . . . . . . . . . 1.38 8.74 6.76 5.99 5.130 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.75 6.55 5.90 4.746 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.09 6.55 5.91 4.459 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56 5.90 4.45910 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55 5.91 4.45911 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.82 5.90 4.45912 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.45914 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.45916 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.74 4.46017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.45918 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.46019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.45920 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4.46021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0.557

.

... .

.

.

.

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C-4 Corporations ▶ Appendix C

. TABLE 3

General Depreciation System—MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Mid-Quarter (Property Placed in Service in Second Quarter) Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

If the Recovery Year Is: 

And the Recovery Period Is:3-Year 5-Year 7-Year 10-Year 15-Year 20-Year

  The Depreciation Rate Is: 1 . . . . . . .41.67 25.00 17.85 12.50 6.25 4.688 2 . . . . . . .38.89 30.00 23.47 17.50 9.38 7.148 3 . . . . . . .14.14 18.00 16.76 14.00 8.44 6.612 4 . . . . . . . 5.30 11.37 11.97 11.20 7.59 6.116 5 . . . . . . . . . . . . . . . . . . 11.37 8.87 8.96 6.83 5.658 6 . . . . . . . . . . . . . . . . . . 4.26 8.87 7.17 6.15 5.233 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.87 6.55 5.91 4.841 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.33 6.55 5.90 4.478 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56 5.91 4.46310 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55 5.90 4.46311 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.46 5.91 4.46312 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.46313 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46314 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.46315 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46216 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.21 4.46317 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46218 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46319 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46220 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46321 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1.673

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MACRS Tables ◀ Corporations C-5

. TABLE 4

General Depreciation System—MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Mid-Quarter (Property Placed in Service in Third Quarter) Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

If the Recovery Year Is: 

And the Recovery Period Is:3-Year 5-Year 7-Year 10-Year 15-Year 20-Year

  The Depreciation Rate Is: 1 . . . . . . .25.00 15.00 10.71 7.50 3.75 2.813 2 . . . . . . .50.00 34.00 25.51 18.50 9.63 7.289 3 . . . . . . .16.67 20.40 18.22 14.80 8.66 6.742 4 . . . . . . . 8.33 12.24 13.02 11.84 7.80 6.237 5 . . . . . . . . . . . . . . . . . . 11.30 9.30 9.47 7.02 5.769 6 . . . . . . . . . . . . . . . . . . 7.06 8.85 7.58 6.31 5.336 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.86 6.55 5.90 4.936 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.53 6.55 5.90 4.566 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56 5.91 4.46010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55 5.90 4.46011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.10 5.91 4.46012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.46013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46114 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.46015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.46116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.69 4.46017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46118 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46120 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.46021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.788

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C-6 Corporations ▶ Appendix C

. TABLE 5

General Depreciation System—MACRS Personal Property Placed in Service After 12/31/86 Applicable Convention: Mid-Quarter (Property Placed in Service in Fourth Quarter) Applicable Depreciation Method: 200 or 150 Percent Declining Balance Switching to Straight Line

If the Recovery Year Is:

And the Recovery Period Is:3-Year 5-Year 7-Year 10-Year 15-Year 20-Year

The Depreciation Rate Is: 1 . . . . . . . 8.33 5.00 3.57 2.50 1.25 0.938 2 . . . . . . .61.11 38.00 27.55 19.50 9.88 7.430 3 . . . . . . .20.37 22.80 19.68 15.60 8.89 6.872 4 . . . . . . .10.19 13.68 14.06 12.48 8.00 6.357 5 . . . . . . . . . . . . . . . . . . 10.94 10.04 9.98 7.20 5.880 6 . . . . . . . . . . . . . . . . . . 9.58 8.73 7.99 6.48 5.439 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.73 6.55 5.90 5.031 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.64 6.55 5.90 4.654 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.56 5.90 4.45810 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.55 5.91 4.45811 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.74 5.90 4.45812 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.45813 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.45814 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.91 4.45815 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.90 4.45816 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.17 4.45817 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.45818 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.45919 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.45820 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.45921 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.901

. TABLE 6

Luxury Automobile Depreciation Limits

Year Automobile Is Placed in Servicea

2012–2016 2010–2011 2009 2008

Maximum Allowable Depreciation (100% Business Use):Year 1 $3,160b $3,060c $2,960d $2,960e

Year 2 5,100 4,900 4,800 4,800Year 3 3,050 2,950 2,850 2,850Year 4 and Each Succeeding Year

1,875

1,775

1,775

1,775

aFor years prior to 2008, see the Revenue Procedure for the appropriate year.b$11,160 in Year 1 (2016, 2015, 2014, 2013, or 2012) if taxpayer claims bonus depreciation.c$11,060 in Year 1 (2011 or 2010) if taxpayer claims bonus depreciation.d$10,960 in Year 1 (2009) if taxpayer claims bonus depreciation.e$10,960 in Year 1 (2008) if taxpayer claimed bonus depreciation.

.

....

TAX AUTHORITY UPDATEAt the time this edition went to print, the IRS had not yet released the 2017 ceiling limits. For exam-ples and problems in the text, we assume the limits will be the same for 2017 as they were in 2016.

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MACRS Tables ◀ Corporations C-7

. TABLE 6 (continued)

Truck and Van Depreciation Limits

Year Truck or Van Is Placed in Servicea

2016 2015 2014 2013 2012 2011 2010 2009 2008

Maximum Allowable Depreciation (100% Business Use):

Year 1 $3,560b $3,460c $3,460c $3,360d $3,360d $3,260e $3,160f $3,060g $3,160f

Year 2 5,700 5,600 5,550 5,400 5,300 5,200 5,100 4,900 5,100Year 3 3,350 3,350 3,350 3,250 3,150 3,150 3,050 2,950 3,050Year 4 and Each Succeeding Year

2,075

1,975

1,975

1,975

1,875

1,875

1,875

1,775

1,875

aFor years prior to 2008, see the Revenue Procedure for the appropriate year.b$11,560 in Year 1 (2016) if taxpayer claims bonus depreciation.c$11,460 in Year 1 (2014 and 2015) if taxpayer claims bonus depreciation.d$11,360 in Year 1 (2012 and 2013) if taxpayer claims bonus depreciation.e$11,260 in Year 1 (2011) if taxpayer claims bonus depreciation.f$11,160 in Year 1 (2010 and 2008) if taxpayer claims bonus depreciation.g$11,060 in Year 1 (2009) if taxpayer claimed bonus depreciation.

. TABLE 7

General Depreciation System—MACRS Residential Rental Real Property Placed in Service After 12/31/86 Applicable Recovery Period: 27.5 Years Applicable Convention: Mid-Month Applicable Depreciation Method: Straight Line

If the Recovery Year Is: 

And the Month in the First Recovery Year the Property Is Placed in Service Is:

1 2 3 4 5 6 7 8 9 10 11 12

  The Depreciation Rate Is: 1 3.485 3.182 2.879 2.576 2.273 1.970 1.667 1.364 1.061 0.758 0.455 0.152 2 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 4 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 5 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 6 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 7 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 8 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 9 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.636 3.63610 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63611 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63712 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63613 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63714 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63615 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63716 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63617 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63718 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63619 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63720 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63621 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63722 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63623 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63724 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63625 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63726 3.637 3.637 3.637 3.637 3.637 3.637 3.636 3.636 3.636 3.636 3.636 3.63627 3.636 3.636 3.636 3.636 3.636 3.636 3.637 3.637 3.637 3.637 3.637 3.63728 1.970 2.273 2.576 2.879 3.182 3.485 3.636 3.636 3.636 3.636 3.636 3.63629 0.000 0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.364 1.667

TAX AUTHORITY UPDATEAt the time this edition went to print, the IRS had not yet released the 2017 ceiling limits. For examples and problems in the text, we assume the limits will be the same for 2017 as they were in 2016.

Z03_POPE0923_31_SE_APPC.indd 7 3/6/17 4:42 PM

C-8 Corporations ▶ Appendix C

. TABLE 8

General Depreciation System—MACRS Nonresidential Real Property Placed in Service After 12/31/86 and Before 5/13/93 Applicable Recovery Period: 31.5 Years Applicable Convention: Mid-Month Applicable Depreciation Method: Straight Line

If the Recovery Year Is: 

And the Month in the First Recovery Year the Property Is Placed in Service Is:

1 2 3 4 5 6 7 8 9 10 11 12

  The Depreciation Rate Is: 1 3.042 2.778 2.513 2.249 1.984 1.720 1.455 1.190 0.926 0.661 0.397 0.132 2 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 4 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 5 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 6 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 7 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 3.175 8 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.175 3.175 3.175 3.175 3.175 9 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17510 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17411 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17512 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17413 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17514 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17415 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17516 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17417 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17518 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17419 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17520 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17421 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17522 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17423 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17524 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17425 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17526 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17427 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17528 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17429 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17530 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.17431 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.175 3.174 3.17532 1.720 1.984 2.249 2.513 2.778 3.042 3.175 3.174 3.175 3.174 3.175 3.17433 0.000 0.000 0.000 0.000 0.000 0.000 0.132 0.397 0.661 0.926 1.190 1.455

Z03_POPE0923_31_SE_APPC.indd 8 3/6/17 4:42 PM

MACRS Tables ◀ Corporations C-9

. TABLE 9

General Depreciation System—MACRS Nonresidential Real Property Placed in Service After 5/12/93 Applicable Recovery Period: 39 years Applicable Depreciation Method: Straight Line

If the Recovery Year Is: 

And the Month in the First Recovery Year the Property Is Placed in Service Is:

1 2 3 4 5 6 7 8 9 10 11 12

  The Depreciation Rate Is:1 2.461 2.247 2.033 1.819 1.605 1.391 1.177 0.963 0.749 0.535 0.321 0.1072-39 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.564 2.56440 0.107 0.321 0.535 0.749 0.963 1.177 1.391 1.605 1.819 2.033 2.247 2.461

. TABLE 10

Alternative Depreciation System—MACRS (Partial Table) Property Placed in Service After 12/31/86 Applicable Convention: Half-Year Applicable Depreciation Method: 150 Percent Declining Balance Switching to Straight Line

If the Recovery Year Is: 

And the Recovery Period Is:

3 4 5 7 10 12

  The Depreciation Rate Is: 1 25.00 18.75 15.00 10.71 7.50 6.25 2 37.50 30.47 25.50 19.13 13.88 11.72 3 25.00 20.31 17.85 15.03 11.79 10.25 4 12.50 20.31 16.66 12.25 10.02 8.97 5   10.16 16.66 12.25 8.74 7.85 6     8.33 12.25 8.74 7.33 7       12.25 8.74 7.33 8       6.13 8.74 7.33 9         8.74 7.3310         8.74 7.3311         4.37 7.3212           7.3313           3.66

Z03_POPE0923_31_SE_APPC.indd 9 3/6/17 4:42 PM

C-10 Corporations ▶ Appendix C

. TABLE 11

Alternative Depreciation System—MACRS (Partial Table) Property Placed in Service After 12/31/86 Applicable Convention: Half-Year Applicable Depreciation Method: Straight Line

If the Recovery Year Is: 

And the Recovery Period Is:

3 4 5 7 10 12

  The Depreciation Rate Is:

1 16.67 12.50 10.00 7.14 5.00 4.17 2 33.33 25.00 20.00 14.29 10.00 8.33 3 33.33 25.00 20.00 14.29 10.00 8.33 4 16.67 25.00 20.00 14.28 10.00 8.33 5   12.50 20.00 14.29 10.00 8.33 6     10.00 14.28 10.00 8.33 7       14.29 10.00 8.34 8       7.14 10.00 8.33 9         10.00 8.3410         10.00 8.3311         5.00 8.3412           8.3313           4.17

. TABLE 12

Alternative Depreciation System—MACRS Real Property Placed into Service After 12/31/86 Applicable Recovery Period: 40 years Applicable Convention: Mid-Month Applicable Depreciation Method: Straight Line

If the Recovery Year Is: 

And the Month in the First Recovery Year the Property Is Placed in Service Is:

1 2 3 4 5 6 7 8 9 10 11 12

  The Depreciation Rate Is:1 2.396 2.188 1.979 1.771 1.563 1.354 1.146 0.938 0.729 0.521 0.313 0.1042 to 40 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.500 2.50041 0.104 0.312 0.521 0.729 0.937 1.146 1.354 1.562 1.771 1.979 2.187 2.396

Z03_POPE0923_31_SE_APPC.indd 10 3/6/17 4:42 PM

MACRS Tables ◀ Corporations C-11

. TABLE 13

Lease Inclusion Dollar Amounts for Automobiles (Other Than for Trucks or Vans) With a Lease Term Beginning in Calendar Year 2016

REV. PROC. 2016-23 TABLE 5 DoLLAR AMoUNTS FoR PASSENGER AUToMoBILES (THAT ARE NoT TRUCKS oR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2016

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th and Later

$ 19,000 $ 19,500 6 13 20 23 2719,500 20,000 7 15 23 27 3020,000 20,500 8 17 26 30 3520,500 21,000 9 19 29 33 3921,000 21,500 10 21 31 38 4221,500 22,000 11 23 34 41 4722,000 23,000 12 26 39 46 5323,000 24,000 14 30 44 54 6024,000 25,000 16 34 50 60 6925,000 26,000 17 38 56 67 7826,000 27,000 19 42 62 74 8527,000 28,000 21 46 68 81 9328,000 29,000 23 50 73 89 10129,000 30,000 25 53 80 95 11030,000 31,000 26 58 85 102 11831,000 32,000 28 62 91 109 12632,000 33,000 30 65 98 116 13433,000 34,000 32 69 103 123 14234,000 35,000 34 73 109 130 15035,000 36,000 35 77 115 137 15836,000 37,000 37 81 121 144 16637,000 38,000 39 85 127 151 17438,000 39,000 41 89 132 158 18339,000 40,000 42 93 138 166 19040,000 41,000 44 97 144 172 19941,000 42,000 46 101 150 179 20742,000 43,000 48 105 155 187 21543,000 44,000 50 109 161 193 22344,000 45,000 51 113 167 201 23145,000 46,000 53 117 173 207 23946,000 47,000 55 121 179 214 24747,000 48,000 57 124 185 222 25548,000 49,000 59 128 191 228 26449,000 50,000 60 133 196 236 27150,000 51,000 62 136 203 242 28051,000 52,000 64 140 209 249 28852,000 53,000 66 144 214 257 29553,000 54,000 68 148 220 263 30454,000 55,000 69 152 226 271 31255,000 56,000 71 156 232 277 320

TAX AUTHORITY UPDATEAt the time this edition went to print, the IRS had not yet released the 2017 lease inclusion amounts. For examples and problems in the text, we assume the amounts will be the same for 2017 as they were in 2016.

Z03_POPE0923_31_SE_APPC.indd 11 3/6/17 4:42 PM

C-12 Corporations ▶ Appendix C

REV. PROC. 2016-23 TABLE 5 DoLLAR AMoUNTS FoR PASSENGER AUToMoBILES (THAT ARE NoT TRUCKS oR VANS) WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2016

Fair Market Value of Passenger Automobile

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th and Later

$ 56,000 $ 57,000 73 160 238 284 32857,000 58,000 75 164 243 292 33658,000 59,000 77 168 249 298 34559,000 60,000 78 172 255 306 35260,000 62,000 81 178 264 316 36462,000 64,000 85 185 276 330 38164,000 66,000 88 194 287 344 39766,000 68,000 92 201 299 358 41368,000 70,000 95 209 311 372 43070,000 72,000 99 217 322 387 44572,000 74,000 102 225 334 400 46274,000 76,000 106 233 346 414 47876,000 78,000 110 241 357 428 49478,000 80,000 113 249 369 442 51080,000 85,000 120 262 390 467 53885,000 90,000 128 282 419 502 57990,000 95,000 137 302 448 537 62095,000 100,000 146 322 477 572 660

100,000 110,000 160 351 521 625 721110,000 120,000 178 390 580 695 801120,000 130,000 196 430 638 765 882130,000 140,000 214 469 697 835 963140,000 150,000 232 508 755 906 1,044150,000 160,000 249 548 814 975 1,126160,000 170,000 267 588 872 1,045 1,207170,000 180,000 285 627 930 1,116 1,288180,000 190,000 303 666 989 1,186 1,368190,000 200,000 321 706 1,047 1,256 1,449200,000 210,000 339 745 1,106 1,326 1,530210,000 220,000 357 784 1,165 1,396 1,611220,000 230,000 375 824 1,223 1,466 1,692230,000 240,000 393 863 1,281 1,537 1,773240,000 and over 411 902 1,340 1,607 1,854

. TABLE 13 (continued)TAX AUTHORITY UPDATEAt the time this edition went to print, the IRS had not yet released the 2017 lease inclusion amounts. For examples and problems in the text, we assume the amounts will be the same for 2017 as they were in 2016.

Z03_POPE0923_31_SE_APPC.indd 12 3/6/17 4:42 PM

MACRS Tables ◀ Corporations C-13

. TABLE 14

Lease Inclusion Dollar Amounts for Trucks and Vans With a Lease Term Beginning in Calendar Year 2016

REV. PROC. 2016-23 TABLE 6 DoLLAR AMoUNTS FoR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2016

Fair Market Value of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th and Later

$ 19,500 $ 20,000 3 8 12 14 1620,000 20,500 4 10 15 17 2020,500 21,000 5 12 17 21 2521,000 21,500 6 14 20 25 2821,500 22,000 7 16 23 28 3222,000 23,000 8 19 28 33 3823,000 24,000 10 23 33 41 4624,000 25,000 12 26 40 47 5525,000 26,000 14 30 46 54 6326,000 27,000 16 34 51 62 7027,000 28,000 17 38 58 68 7928,000 29,000 19 42 63 76 8629,000 30,000 21 46 69 82 9530,000 31,000 23 50 75 89 10331,000 32,000 25 54 80 97 11132,000 33,000 26 58 86 104 11933,000 34,000 28 62 92 111 12734,000 35,000 30 66 98 117 13635,000 36,000 32 70 104 124 14336,000 37,000 34 73 110 132 15137,000 38,000 35 78 115 139 16038,000 39,000 37 82 121 146 16739,000 40,000 39 85 128 152 17640,000 41,000 41 89 133 160 18441,000 42,000 42 94 139 166 19242,000 43,000 44 97 145 174 20043,000 44,000 46 101 151 181 20844,000 45,000 48 105 157 187 21745,000 46,000 50 109 162 195 22446,000 47,000 51 113 169 201 23347,000 48,000 53 117 174 209 24048,000 49,000 55 121 180 216 24849,000 50,000 57 125 186 222 25750,000 51,000 59 129 191 230 26551,000 52,000 60 133 197 237 27352,000 53,000 62 137 203 244 28153,000 54,000 64 141 209 250 29054,000 55,000 66 144 216 257 29855,000 56,000 68 148 221 265 30556,000 57,000 69 153 226 272 31457,000 58,000 71 156 233 279 32158,000 59,000 73 160 239 285 33059,000 60,000 75 164 244 293 33860,000 62,000 77 170 253 304 35062,000 64,000 81 178 265 317 36664,000 66,000 85 186 276 331 383

TAX AUTHORITY UPDATEAt the time this edition went to print, the IRS had not yet released the 2017 lease inclusion amounts. For examples and problems in the text, we assume the amounts will be the same for 2017 as they were in 2016.

Z03_POPE0923_31_SE_APPC.indd 13 3/6/17 4:42 PM

C-14 Corporations ▶ Appendix C

REV. PROC. 2016-23 TABLE 6 DoLLAR AMoUNTS FoR TRUCKS AND VANS WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2016

Fair Market Value of Truck or Van

Tax Year During Lease

Over

Not Over

1st

2nd

3rd

4th

5th and Later

$ 66,000 $ 68,000 88 194 288 345 39968,000 70,000 92 202 299 360 41470,000 72,000 95 210 311 374 43172,000 74,000 99 217 324 387 44774,000 76,000 102 226 335 401 46376,000 78,000 106 233 347 415 48078,000 80,000 110 241 358 430 49580,000 85,000 116 255 379 454 52485,000 90,000 125 274 409 489 56490,000 95,000 134 294 437 525 60595,000 100,000 143 314 466 560 645

100,000 110,000 156 344 510 612 706110,000 120,000 174 383 569 682 787120,000 130,000 192 422 628 752 868130,000 140,000 210 462 685 823 949140,000 150,000 228 501 744 893 1,030150,000 160,000 246 540 803 963 1,111160,000 170,000 264 580 861 1,033 1,192170,000 180,000 282 619 920 1,102 1,274180,000 190,000 300 658 979 1,172 1,354190,000 200,000 318 698 1,036 1,243 1,435200,000 210,000 335 738 1,095 1,313 1,516210,000 220,000 353 777 1,154 1,383 1,597220,000 230,000 371 816 1,212 1,454 1,678230,000 240,000 389 856 1,270 1,524 1,759240,000 and over 407 895 1,329 1,594 1,839

. TABLE 14 (continued)TAX AUTHORITY UPDATEAt the time this edition went to print, the IRS had not yet released the 2017 lease inclusion amounts. For examples and problems in the text, we assume the amounts will be the same for 2017 as they were in 2016.

Z03_POPE0923_31_SE_APPC.indd 14 3/6/17 4:42 PM