what are the recovery periods under the modified accelerated cost recovery system

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In Modified Accelerated Cost Recovery System (MACRS) system of depreciation, the companies’ write-off the entire cost of an asset over the asset's class life and it is called recovery period. An asset does not have any salvage value in MACRS depreciation system. The recovery periods under the modified accelerated cost recovery system is different for different asset classes based on their estimated useful life. This recovery period varies from 3 years to 39 year.

For tractors racehorses etc. it is 3 years
For automobiles, trucks, computers, office machinery etc. it is 5 years
For office furniture and fixtures, it is 7 years
For vessels, tugs, it is 10 years
Municipal waste water treatment plant, land improvements etc. it is 15 years
For farm buildings, it is 20 years
For structure where 80% or more gross rental income is from dwelling units, it is 27.5 years
For office buildings, stores, warehouse etc. it is 39 years

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what are the recovery periods under the modified accelerated cost recovery system

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