ADS

Alternative Depreciation System (ADS)

Under ADS the depreciation is figured the same as MACRS except the straight-line method is used over the ADS recovery period, with the appropriate convention.

The following types of property must be depreciated under ADS:

Tangible property used predominantly outside the United States.
Tax exempt property
Tax exempt bond financed property.
Imported property covered by an executive order of the president of the US.
Property used in farming and placed in service during any tax year in which you made an election under section 263A(d)(3).

Instead of MACRS you can make an irrevocable election with respect to any classification of property for any tax year to use ADS. For residential rental and nonresidential real property, you may make this election separately for each property.