Which of the following is not a characteristic of MACRS for property other than real estate?
A) MACRS uses shorter asset lives.
B) MACRS increases taxable income in the early years of the asset's life.
C) MACRS accelerates cost recovery.
D) MACRS ignores salvage value.

Question

Quizplus · Accepted Answer

MACRS actually decreases taxable income in the early years of the asset's life by allowing for accelerated depreciation deductions. This is a key benefit of using MACRS for tax purposes.

Which of the Following Is Not a Characteristic of MACRS