Modified Accelerated Cost Recovery System (MACRS) - Definition
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Academic Research on Modified Accelerated Cost Recovery System Long-run effects of theaccelerated cost recovery system, Fullerton, D., & Kodrzycki, Y. (1981). This paper looks at the general concern over the President Reagans tax plan, and the long run effect since this plan became enacted into law. This paper measures, for 37 different assets and for 18 different industries, the reduction in effective corporate tax rates that result from the acceleration of depreciation allowances and the expansion of the investment tax credit. Depreciation lives and methods: current issues in the US capitalcost recovery system, Brazell, D. W., & Mackie III, J. B. (2000). National Tax Journal, 531-561. This paper presents the reason for which the Congress ordered the Treasury to study the tax depreciation system. This paper is derived from the staff work for the Treasury study. The paper first discusses the rationale for a depreciation allowance, the current tax depreciation system, and evaluates the current tax depreciation system using the cost of capital. It also examines several problems with the current tax depreciation system. Distributing the corporate income tax: Revised US treasury methodology, Cronin, J. A., Lin, E. Y., Power, L., & Cooper, M. (2013). National Tax Journal,66(1), 239. The purpose of this analysis is to improve the U.S. Department of the Treasurys distributional model and methodology by defining new model parameters. Depreciation-policy changes: tax, earnings management, and investment opportunity incentives, Keating, A. S., & Zimmerman, J. L. (1999).Journal of Accounting and Economics,28(3), 359-389. This paper presents a notion contrary to previous studies. It states that managers change depreciation policies in predictable ways. The paper identifies three dimensions of depreciation-policy changes: whether it is a method change or an estimate revision; whether it is income-increasing or decreasing; and whether it applies to new assets only or both new and existing assets. Findings are documented, and other research are undertaken. Development of a Simulation Software for Plant Asset Depreciation Computation UsingModified Accelerated Cost Recovery System, Akinnuli, B. O., & Ojo, O. T. (2018). Open Access Library Journal,5(03), 1. This work presents the computation of depreciation under Modified Accelerated Cost Recovery System using simulation software developed for the purpose. The three case studies presented provide in-depth analysis and applications of the simulation software that was developed. The results from these case studies provide an quick insight for evaluating an unstructured real life problem as depreciation (cost recovery) in organizations. Small business utilization ofacceleratedtaxdepreciation: Section 179 expensing and bonusdepreciation, Knittel, M. (2005, January). InProceedings. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association(Vol. 98, pp. 273-286). National Tax Association. This paper uses individual and corporate tax data to examine small firms utilization of Section 179 expensing and bonus depreciation for tax years 2001 to 2003. How elastic is the corporate income tax base?, Gruber, J., & Rauh, J. (2007).Taxing corporate income in the 21st century, 140-163. This paper examines the differences between income raised from corporate level taxation and individual level taxation. It goes on to examine different literatures on corporate tax and its relation to corporate behavior in the United States. This paper estimates the impact of the corporate tax rate on the level of corporate taxable income. Depreciationand tax policies in the seven countries with the highest direct investment from the US, Remer, D. S., & Song, Y. H. (1993). The Engineering Economist,38(3), 193-208. This paper compares the United States depreciation rules, corporate income tax rates, and investment tax credits with the seven countries that have the highest direct investment from the U.S. For illustrative purposes, two comparative examples for computer systems and manufacturing equipment are included. Capital stockdepreciation, tax rules, and composition of aggregate investment, Levy, D. (1995).Journal of Economic and Social Measurement,21(1), 45-65. In this study, the author estimates time varying aggregate capital stock depreciation rates for the post-war U.S. economy using capital-investment evolution equation along with the data on the annual net capital stock and corresponding quarterly gross investment series. The paper also estimate depreciation rates of consumer durable goods, producer durable goods, and nonresidential business structures. Optimaldepreciationpolicy under the tax reform act of 1986, Fleischer, G. A., Mason, A. K., & Leung, L. C. (1990). IIE transactions,22(4), 330-339. In this paper, mathematical expressions for allowable depreciation are developed for the Modified Accelerated Cost Recovery System (MACRS) as well as the allowed alternate method (AMACRS), two capital recovery methods permitted under the Tax Reform Act of 1986. The study analyses the choice between MACRS or AMACRS based on different factors. Conditions under which either MACRS or AMACRS is optimal are specified, and the economic value of the optimal policy is determined. The corporate income taxsystem: Overview and options for reform, Keightley, M. P., & Sherlock, M. F. (2014). This paper explores the different debates about corporate income tax system in relations to tax reform and the economy. This report presents information and research on the corporate tax to help policymakers understand and evaluate arguments presented in the tax reform debate. This report reviews the structure of the corporate income tax, the economic effects of the corporate tax, and broad reform options. Incentive effects of bonusdepreciation, Hulse, D. S., & Livingstone, J. R. (2010). Journal of Accounting and Public Policy,29(6), 578-603. This study examines the effect oncapital expendituresof bonus depreciation, which was intended to stimulate such spending by allowingbusinessesto immediately expense a portion of the cost of qualified capital expenditures from late 2001 through 2004.