Asset Depreciation Range - ADR

Asset Depreciation Range - ADR
An elective accounting method established by the Internal Revenue Code for tangible assets placed into service after 1970. Prior to the ADR system, there were over 100 asset classes for tangible property based on the taxpayer's business and industry. Because the ADR system did not solve the problems it was intended to address, namely, disagreements between the IRS and taxpayers about accounting for the useful life, salvage value and repairs of assets, the Accelerated Cost Recovery System was introduced in 1981 to provide a less complicated way to determine depreciation.

Businesses had more flexibility under the ADR system to determine the useful life of an asset, because the asset depreciation range allowed the taxpayer a 20% leeway above and below the IRS's established useful life for each asset class. Thus, if the established useful life of a desk was considered to be 10 years, the taxpayer could depreciate it over anywhere from eight to 12 years. Depreciation methods allowed by the IRS have changed several times since the ADR system; today the taxpayer must depreciate that same desk over seven or 10 years, depending on the depreciation system used.


Investment dictionary. . 2012.

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  • Asset Depreciation Range — (ADR) The range of depreciable lives allowed by the Internal Revenue Service for a specified depreciable asset. The ADR system applies to assets placed in service after 1970 and before 1980, at which time the ADR system was replaced by the… …   Black's law dictionary

  • Asset Depreciation Range — (ADR) The range of depreciable lives allowed by the Internal Revenue Service for a specified depreciable asset. The ADR system applies to assets placed in service after 1970 and before 1980, at which time the ADR system was replaced by the… …   Black's law dictionary

  • Лимиты амортизации активов (ASSET DEPRECIATION RANGE, ADR)  — Верхний и нижний пределы, установленные налоговыми органами для сроков эксплуатации активов. Для целей налогообложения прибыли амортизацию активов можно начислять в течение полезного срока службы, находящегося в пределах этого диапазона, без… …   Словарь терминов по управленческому учету

  • ADR — abbr 1 administrative dispute resolution, alternative dispute resolution 2 asset depreciation range Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. ADR …   Law dictionary

  • ADR — Adresse (International » German) **** Alternative Dispute Resolution (Community » Law) ** American Depositary Receipt (Business » Stock Exchange) * American Depository Receipt (Business » General) * Adverse Drug Reaction (Medical » Oncology) *… …   Abbreviations dictionary

  • ADR — See alternative dispute resolution Asset Depreciation Range …   Black's law dictionary

  • ADR — See alternative dispute resolution Asset Depreciation Range …   Black's law dictionary

  • MACRS — Part of a series on Taxation Taxation in the United States …   Wikipedia

  • лимиты амортизации активов — Верхний и нижний пределы, установленные налоговыми органами для сроков эксплуатации активов. Для целей налогообложения прибыли амортизацию активов можно начислять в течение полезного срока службы, находящегося в пределах этого диапазона, без… …   Справочник технического переводчика

  • Modified Accelerated Cost Recovery System — (MACRS) See Asset Depreciation Range (ADR); Accelerated Cost Recovery System (ACRS) …   Black's law dictionary

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