Calculate MACRS depreciation for US tax purposes across all property classes (3, 5, 7, 10, 15, 20, 27.5, 39 year) with mid-quarter convention.
For an entered depreciable basis, property class, convention, and placed-in-service timing, this calculator produces a year-by-year MACRS deduction schedule. It covers the listed 3-, 5-, 7-, 10-, 15-, 20-, 27.5-, and 39-year recovery classes, including mid-quarter calculations for qualifying personal property. A frequent surprise is that the recovery period does not equal the number of schedule rows. Partial-year conventions spread 5-year property across six tax years, with smaller deductions at one or both ends.
A concrete input and expected output from the current implementation.
Input
Depreciable basis: $100.00; property class: 5-year; convention: mid-quarter; placed-in-service quarter: Q4; Section 179 and bonus depreciation: $0.00
Expected output
Annual deductions: Year 1 $5.00; Year 2 $38.00; Year 3 $22.80; Year 4 $13.68; Year 5 $10.94; Year 6 $9.58. Total depreciation: $100.00. Ending basis: $0.00.
The fourth-quarter mid-quarter percentages for 5-year property are 5.00, 38.00, 22.80, 13.68, 10.94, and 9.58 percent. Applied to a $100.00 basis, the rounded annual deductions total exactly $100.00.
The selected class supplies the recovery pattern. Under GDS, 3-, 5-, 7-, and 10-year property uses the 200 percent declining-balance method, while 15- and 20-year property uses 150 percent declining balance. Each switches to straight line when that produces an equal or larger deduction. The 27.5- and 39-year real-property classes use straight line.
The convention sets the partial-year fractions. Mid-quarter treats property placed during a quarter as placed at that quarter's midpoint, so the selected quarter changes the first and final deductions. Half-year uses a midyear assumption. For the 27.5- and 39-year real-property classes, the applicable GDS convention is mid-month, with partial deductions in the first and last years.
No for federal GDS calculations. Residential rental property in the 27.5-year class and nonresidential real property in the 39-year class use straight-line depreciation with the mid-month convention. A mid-quarter schedule is intended for applicable personal property and should not be substituted for the real-property schedule.
No. Applicability depends on the relevant MACRS property placed in service throughout the tax year, including property beyond the single asset being calculated and applicable exclusions. Use the mid-quarter option only after determining that the convention applies, then select the quarter containing the asset's placed-in-service date.
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