Under the MACRS principles the tax life winds up being shorter in most cases compared to an assets economic life.

Question

Quizplus · Accepted Answer

MACRS (Modified Accelerated Cost Recovery System) is a tax depreciation method in which tangible property is assigned to a specific recovery period based on its class life. The recovery period for tax purposes is generally shorter than the estimated useful life or economic life of an asset, which allows for faster tax deductions and depreciation benefits. Therefore, the statement is true.

Under the MACRS Principles the Tax Life Winds Up Being