What Is MACRS Depreciation?

The system behind every rental depreciation deduction.

MACRS, defined

MACRS (Modified Accelerated Cost Recovery System) is the IRS depreciation framework. Real property uses the straight-line method over its recovery period — 27.5 or 39 years.

Straight line for buildings

Although MACRS allows accelerated methods for some assets, buildings must use straight-line: the same deduction each full year (building basis ÷ recovery period).

Shorter-life components

Cost segregation moves qualifying components into shorter MACRS classes (5-, 7-, 15-year), where faster methods and bonus depreciation apply.

Frequently asked questions

Is rental property MACRS straight line?

Yes — real property uses the straight-line MACRS method over 27.5 or 39 years.

Can you accelerate MACRS on a building?

Not the building itself, but cost segregation can shift components into shorter-life classes that depreciate faster.

Sources

Educational information and estimates only. Not tax advice. Tax rules change and vary by situation; consult a qualified tax professional before acting.

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