Explore commonly used personal finance terms.
The Accelerated Cost Recovery System (ACRS) was a method introduced in the U.S. to allow for faster depreciation of assets, giving businesses tax deductions earlier in an asset’s life. ACRS enabled companies to recover the costs of assets more quickly than traditional depreciation, reducing taxable income sooner. This system was later replaced by the Modified Accelerated Cost Recovery System (MACRS) but remains a foundational concept in tax planning for asset depreciation, impacting cash flow and tax strategies.
