MACRS is the predominant method for tax basis depreciation for assets placed in service after which year?

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Multiple Choice

MACRS is the predominant method for tax basis depreciation for assets placed in service after which year?

Explanation:
MACRS became the standard for tax depreciation starting with property placed in service after 1986. The Tax Reform Act of 1986 replaced the older ACRS system, and 1987 is the first year when new assets fall under MACRS. Therefore, assets placed in service in 1987 and later are depreciated using MACRS, while those placed in service before 1987 generally followed ACRS. The other years listed aren’t the transition point for MACRS.

MACRS became the standard for tax depreciation starting with property placed in service after 1986. The Tax Reform Act of 1986 replaced the older ACRS system, and 1987 is the first year when new assets fall under MACRS. Therefore, assets placed in service in 1987 and later are depreciated using MACRS, while those placed in service before 1987 generally followed ACRS. The other years listed aren’t the transition point for MACRS.

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