ACRS Law and Legal Definition
ACRS is an abbreviation for Accelerated Cost Recovery System. It is a system of depreciation introduced by the Economic Recovery Tax Act of 1981. ACRS is an IRS approved method of calculating depreciation expense for tax purposes. This method bases depreciation on recovery periods instead of useful time. ACRS is also referred to as Accelerated Depreciation.
The Tax Reform Act of 1986 amended the ACRS depreciation method by defining a modified accelerated cost recovery system (MACRS). The Act replaced ACRS for property placed into service after 1986.