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    MACRS Depreciation

    Tax Compliance
    Modified Accelerated Cost Recovery System (MACRS) is the tax depreciation method required by the IRS for most business assets, including construction equipment. Under MACRS, heavy construction equipment typically falls under 5-year or 7-year property classes, allowing accelerated write-offs. Combined with Section 179 expensing and bonus depreciation, MACRS enables contractors to significantly reduce taxable income in the year equipment is placed in service. (Source: IRC §168, IRS Publication 946)

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