The MACRS of depreciation is used for income tax purposes and financial reporting purposes.

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The Modified Accelerated Cost Recovery System (MACRS) is used for income tax purposes in the United States to recover the cost of assets through depreciation over a specified life. For financial reporting purposes, companies typically use different depreciation methods such as straight-line or declining balance, which are in accordance with Generally Accepted Accounting Principles (GAAP).

The MACRS of Depreciation Is Used for Income Tax Purposes