Topic summary
MACRS
Extracted from the Wikipedia article Modified Accelerated Cost Recovery System.
Retirement of MACRS assets
Gain or loss may be deferred or recognized on retirement of assets under MACRS, at the taxpayer's election. Under default rules, proceeds from disposing of a depreciable asset in a multiple asset account are recognized as ordinary income, and depreciation on the account is unaffected by the retirement. An optional method allows the asset to be removed from the account at the start of the year from retirement, in which case gain or loss is on the asset is subject to regular rules.