documentation. 1  the use of documentary evidence. 2  a furnishing with documents, as to substantiate a claim or the data in a book or article. 3  Computers.
1 Regular depreciation: Most business equipment is depreciable under MACRS depreciation (Modified Accelerated Cost Recovery System-pronounced MAKERS). 2  MACRS includes an accelerated method, which produces higher deductions in the early years of the property's recovery period than the MACRS straight-line method.
For MACRS purposes, the building is classified as nonresidential realty, and is assigned a recovery period of 39 years. MACRS Recovery Basis - Personalty. Once an asset is properly classified under MACRS it is necessary to determine the cost recovery basis of the asset. As discussed in the preceding section of this module, the tax basis is generally the total cost of the property (with certain exceptions for personal property converted to a business use).