TITLE 26. INTERNAL REVENUE CODE § 168. Accelerated cost recovery system. [Effective until January 1, 2025], 26 USCS § 168

Summary

(a) General rule. Except as otherwise provided in this section, the depreciation deduction provided by section 167(a) [26 USCS § 167(a)] for any tangible property shall be determined by using—

(1) the applicable depreciation method,

(2) the applicable recovery period, and

(3) the applicable convention.

(b) Applicable depreciation method. For purposes of this section—

(1) In general. Except as provided in paragraphs (2) and (3), the applicable depreciation method is—

(A) the 200 percent declining balance method,

(B) switching to the straight line method for the 1st taxable year for which using the straight line method with respect to the adjusted basis as of the beginning of such year will yield a larger allowance.

(2) 150 percent declining balance method in certain cases. Paragraph (1) shall be applied by substituting “150 percent” for “200 percent” in the case of—

(A) any 15-year or 20-year property not referred to in paragraph (3),

(B) any property (other than property described in paragraph (3)) which is...