Publication 534 Contents (Rev. Nov.95) Introduction ............................................... 2 Cat. No. 15064O Department 1. Accelerated Cost Recovery System of the (ACRS) ................................................ 2 Treasury ACRS Defined...................................... 2 What Can and Cannot Be Depreciating Internal Depreciated Under ACRS ............ 2 Revenue How To Figure the Deduction ............. 3 Service Dispositions.......................................... 6 Property Placed 2. Other Methods of Depreciation ......... 7 How To Figure the Deduction ............. 7 in Service Methods To Use .................................. 8 How To Change Methods ................... 8 Dispositions.......................................... 9 Before 1987 3. Listed Property ..................................... 10 Listed Property Defined....................... 10 ^cACRS Predominant Use Test......................... 10 Deductions After Recovery ^cOther Methods of Depreciation Period............................................. 12 Leased Property................................... 12 ^cListed Property What Records Must Be Kept .............. 12 Appendix  ................................................... 14 Index ........................................................... 21 Important Change for 1995   Major changes to Publications 534 and 946. This publication, as well as Publication 946, How To Depreciate Property,   has been changed. Publication 534 has been short- ened. It no longer contains general informa- tion on MACRS and the section 179 deduc- tion. It contains a discussion of the accelerated cost recovery system (ACRS), the ACRS Percentage Tables, a discussion of other methods of depreciation, and a limited discussion of listed property. We expanded Publication 946 by adding material taken from Publication 534. We added more detail to the discussions of the section 179 deduction, the modified acceler- ated cost recovery system (MACRS), and listed property. We replaced the partial MACRS Percentage Tables with the complete ones from Publication 534. We also added the Table of Class Lives and Recovery Periods from Publication 534. We made these changes to eliminate most of the duplication that existed in the two publi- cations. This will save money and make it eas- ier for you to decide which publication you need. Use this publication to figure deprecia- tion on property you placed in service before 1987; use Publication 946 to figure deprecia- tion on property you placed in service after 1986. Introduction The law allows you to recover your cost in bus- iness or income-producing property through yearly tax deductions. You do this by depreci- ating your property, that is, by deducting some