Anonymous
Anonymous asked in Business & FinanceTaxesUnited States · 1 decade ago

What is the difference between ADR and ACRS in income tax law?

I am taking a into fed income tax class. I know that ADR was the old system, but ACRS §187 now applies. I know that there was "salvage value" under ADR but not under ACRS. My question is: under current law - what property still applies for ADR treatment and not ACRS? My book tells me there are certain categories that do but does not name them and only focuses on ACRS. Thanks!

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  • Anonymous
    1 decade ago
    Best Answer

    Dear dj: The ADR system was put into law about 1970 and the categories were established for this system. The ACRS system was put on the books in 1981 and complimented the old ADR method of depreciation. My guess is if you look through the two systems some items will be covered by the old ADR system and not by the newer ACRS. Also you may have started depreciating an item under the old ADR and if the life extends to today it would still be covered by the older method.

    This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor

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