The General Depreciation System (GDS) is a tax depreciation system used to determine the depreciation deduction for depreciable property using the Modified Accelerated Cost Recovery System (MACRS) in the United States.
MACRS is a depreciation method introduced in 1986 to calculate tax depreciation for property placed in service after its inception. It allows businesses to recover the cost basis of certain property more quickly, by assigning longer lives for personal property and offering conventions for calculation.
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