Macrs Life Carpet

If the carpet is glued down perhaps in a basement then it becomes attached to the property and must be depreciated over 27 5 years.

Macrs life carpet.

System macrs for carpeting in a rental apartment over a 5 year period. Thus if the class life of carpet e g is more than 4 but less than 10 years the landlord depreciates carpet over 5 years because it is 5 year property. The property class generally determines the depreciation method recovery period and convention. Macrs consists of two depreciation systems the general depreciation system gds and the alternative depreciation system ads.

See irs publication 5271. The macrs asset life table is derived from revenue procedure 87 56 1987 2 cb 674. Macrs depreciation schedules are only used for income tax reporting not financial reporting. Beyond that distinction depreciating carpeting is the same as depreciating a new appliance see the more detailed appliance depreciation article above.

Macrs aims to maximize deductions using accelerated depreciation schedules to encourage capital investments not to accurately reflect the use of the asset over its useful life on the financial statements.