Breaking Down Recovery Periods in Tax Law: What Every Property Owner Should Know

Choosing the right depreciation method within the MACRS framework—whether straight-line or an accelerated approach—further impacts the outcome. While straight-line spreads deductions evenly across the recovery period, accelerated methods allow for larger deductions in earlier years. However, these choices must align with IRS rules and are sometimes restricted based on asset class or business activity. Recovery periods also play a significant role in year-end planning. Businesses that acquire and place assets into service before December 31 can begin depreciation immediately, potentially lowering that year’s taxable income. To get more information click here #recoveryperiodtaxes