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Modified Accelerated Cost Recovery System

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					CE 4101

Fall 2002

Modified Accelerated Cost Recovery System
The following is a list of the nine property classes under the General depreciation System (GDS) and examples of the types of property included in each class. 1. 3-year property. (a) Tractor units for over-the-road use. (b) Any race horse over 2 years old when placed in service. (c) Any other horse over 12 years old when placed in service. (d) Qualified rent-to-own property. 2. 5-year property. (a) Automobiles, taxis, buses, and trucks. (b) Computers and peripheral equipment. (c) Office machinery (such as typewriters, calculators, and copiers). (d) Any property used in research and experimentation. (e) Breeding cattle and dairy cattle. (f) Appliances, carpets, furniture, etc., used in a residential rental real estate activity. 3. 7-year property. (a) Office furniture and fixtures (such as desks, files, and safes). (b) Agricultural machinery and equipment. (c) Any property that does not have a class life and has not been designated by law as being in any other class. 4. 10-year property. (a) Vessels, barges, tugs, and similar water transportation equipment. (b) Any single purpose agricultural or horticultural structure. (c) Any tree or vine bearing fruits or nuts. 5. 15-year property. (a) Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, and bridges). (b) Any retail motor fuels outlet, such as a convenience store. 6. 20-year property. (a) This class includes farm buildings (other than single purpose agricultural or horticultural structures). 7. 25-year property. (a) This class is water utility property, which is either of the following. Property that is an integral part of the gathering, treatment, or commercial distribution of water, and that, without regard to this provision, would be 20-year property. (b) Any municipal sewer.

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CE 4101

Fall 2002

GDS Recovery Rates
Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 3-Year 0.3333 0.4445 0.1481 0.0741 5-Year 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576 7-Year 0.1429 0.2449 0.1749 0.1249 0.0893 0.0892 0.0893 0.0446 10-Year 0.1000 0.1800 0.1440 0.1152 0.0922 0.0737 0.0655 0.0655 0.0656 0.0655 0.0328 15-Year 0.0500 0.0950 0.0855 0.0770 0.0693 0.0623 0.0590 0.0590 0.0591 0.0590 0.0591 0.0590 0.0591 0.0590 0.0591 0.0295

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