ACE calculation tax assumptions

  • IRS regulations state that for assets bought in a pre-ACE year, the 1st ACE recovery year begins on the 1st day of the 1st tax year beginning after 1989. Therefore, luxury auto limits are based on the new “acquisition date.”
  • No monthly, half-year, or mid-quarter conventions are used for ACRS/MACRS assets bought in pre-ACE years. A full year is taken unless there is a disposition.
  • ACRS personal property assets' recovery periods aren't entered by the application. A popup window will request the ADS life. ACRS real property is assigned a recovery period based on a 40-year ADS life.

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close