MACRS does not use salvage value. As a result, if a 7-year MACRS asset is held for 10 years, its adjusted basis will be zero.

Name: MACRS does not use salvage value. As a result, if a 7-year MACRS asset is held for 10 years, its adjusted basis will be zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

MACRS depreciation does not consider salvage value, and by the end of the recovery period, the asset's adjusted basis is zero, even if held longer.

MACRS Does Not Use Salvage Value