TABLE 8.3 Depreciation under Modified Accelerated Cost Recovery System (MACRS) RECOVERY PERIOD CLASS YEAR 3 YEARS 5 YEARS 7 YEARS 10 YEARS 15 YEARS 20 YEARS 1 .3333 .2000 .1429 .1000 .0500 .03750 2 .4445 .3200 2449 .1800 .0950 .07219 3 .1481 .1920 .1749 .1440 .0855 .06677 466 4 .0741 .1152 .1249 .1152 .0770 .06177 5 .1152 .0893 .0922 .0693 .05713 6 .0576 .0892 .0737 .0623 .05285 781 .0893 .0655 .0590 .04888 .0446 .0655 .0590 .04522 9 .0656 .0591 .04462 10 11 12 13 14 15 .0655 .0590 .04461 .0328 .0591 .04462 .0590 .04461 .0591 .04462 .0590 .04461 .0591 .04462 16 17 18 6 7 8 .0295 .04461 .04462 .04461 19 .04462 20 .04461 21 .02231 Depreciation is expressed as a percent of the asset's cost. These schedules are based on the IRS publication 946. How to Depreciate Property and other details on depreciation are presented later in the chapter. Note that five-year depreciation actually carries over six years because the IRS assumes purchase is made in midyear.