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.
You can use the percentages in Table 2-2 to compute annual depreciation under MACRS. The tables show the percentages for the first few years or until the change to the straight line method is made. See Appendix A of Publication 946 for complete tables.ou do this by depreciating the property; that is, by deducting some of the cost each year on your tax return. Three factors determine how much depreciation you can deduct each year: (1) your basis in the property, (2) the recovery period for the property, and (3) the depreciation method used.