The Accelerated Cost Recovery System (ACRS) is a method of tax depreciation introduced in 1981 and modified in 1984. It was used for tangible personal property placed in service between January 1, 1981, and December 31, 1986, and later replaced by the Modified Accelerated Cost Recovery System (MACRS) for assets placed in service after 1986.
Tangible personal property refers to objects that can be physically touched and are not classified as real estate. When determining whether a fixture is real estate or tangible personal property, the method of attachment is pivotal.
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