Assets placed in service before January 1, 1987 and after December 31, 1980 generally are depreciated using the Accelerated Cost Recovery System (ACRS) for federal purposes. Enter one of the following methods to compute allowable current year depreciation:
R. The prescribed method for 3 year, 5 year or 10 year personal property. This represents the accelerated rate of depreciation changing to straight line to maximize the deduction. Enter the applicable recovery property in the "Life/Rate"
R3. The optional method for 3 year personal property. The straight line method of depreciation is computed over the life entered. Valid useful life years for this type of property are 3, 5 and 12 years. If a depreciation method of "R3" is entered with a useful life other than 3, 5 or 12 years, a 5 year life is assumed for computational purposes and a diagnostic message is issued.
R5. The optional method for 5 year personal property. The straight line method of depreciation is computed over the life entered. Valid useful life years for this type of property are 5, 12 and 25 years. If a depreciation method of "R5" is entered with a useful life other than 5, 12 or 25 years, a 12 year life is assumed for computational purposes and a diagnostic message is issued.
R10. The optional method for 10 year personal property. The straight line method of depreciation is computed over the life entered. Valid useful life years for this type of property are 10, 25 and 35 years. If a depreciation method of "R10" is entered with a useful life other than 10, 25 or 35 years, a 25 year life is assumed for computational purposes and a diagnostic message is issued.
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