Pub 946 MACRS Worksheet: Depreciation Line by Line

Updated November 5, 2026. Quick answer: The MACRS Worksheet in Publication 946 turns the percentage tables into a depreciation deduction for one item of property: Part I records the system, class, date, recovery period, convention and table rate, and Part II multiplies the property’s depreciation basis by that rate. It is not for automobiles.

What the worksheet is for

The publication says “You can use this worksheet to help you figure your depreciation deduction using the percentage tables.” “Use a separate worksheet for each item of property.” “Then, use the information from this worksheet to prepare Form 4562.” The sheet is marked “Keep for Your Records”, and carries a warning: “Do not use this worksheet for automobiles.” “Use the Depreciation Worksheet for Passenger Automobiles in chapter 5.”

Part I: the property record

Line	What it asks
1	“MACRS system (GDS or ADS)”
2	“Property class”
3	“Date placed in service”
4	“Recovery period”
5	“Method and convention”
6	“Depreciation rate (from tables)”

Part II: the arithmetic

Line	What it asks
7	“Cost or other basis” “ If real estate, do not include cost (basis) of land.”
8	“Business/investment use”
9	“Multiply line 7 by line 8”
10	“Total claimed for section 179 deduction and other items”
11	“Subtract line 10 from line 9. This is your tentative basis for depreciation”
12	“Multiply line 11 by the applicable percentage if the special depreciation allowance applies. This is your special depreciation allowance.” “Enter -0- if this is not the year you placed the property in service, the property is not qualified property, or you elected not to claim a special allowance”
13	“Subtract line 12 from line 11. This is your basis for depreciation”
14	“Depreciation rate (from line 6)”
15	“Multiply line 13 by line 14. This is your MACRS depreciation deduction”

Unadjusted basis and the tables

The tables apply to unadjusted basis: “Unadjusted basis is the same basis amount you would use to figure gain on a sale, but you figure it without reducing your original basis by any MACRS depreciation taken in earlier years.” It is still reduced by “Any amortization taken on the property.”, “Any section 179 deduction claimed.” and “Any special depreciation allowance taken on the property.”

The IRS example: office furniture

The publication’s example: “You bought office furniture (7-year property) for $10,000 and placed it in service on August 11, 2025.” “You use GDS and the half-year convention to figure your depreciation.” It says to use “Table A-1”. Filled in, the worksheet reads:

Line	Entry	Printed value
1	MACRS system	GDS
2	Property class	7-year
3	Date placed in service	8/11/25
4	Recovery period	7-year
5	Method and convention	200%DB/Half-Year
6	Depreciation rate	0.1429
7	Cost or other basis	$10,000
8	Business/investment use	100 %
9	Line 7 times line 8	$10,000
10	Section 179 and other items	-0-
11	Line 9 minus line 10	$10,000
12	Special depreciation allowance	-0-
13	Line 11 minus line 12	$10,000
14	Depreciation rate from line 6	0.1429
15	Line 13 times line 14	$1,429

Line 15 is $1,429, the first-year deduction: $10,000 times 0.1429 (computed).

A second example with business use under 100% (invented numbers)

Property costing $25,000 used 60% for business, no section 179 deduction and no special allowance, using the same 7-year first-year rate of 0.1429 from the table the publication uses (computed).

Line	Entry	Value
7	Cost (invented)	$25,000
8	Business use (invented)	60%
9	Line 7 times line 8 (computed)	$15,000
10	Section 179 and other items (none)	-0-
11	Line 9 minus line 10 (computed)	$15,000
12	Special depreciation allowance (none)	-0-
13	Line 11 minus line 12 (computed)	$15,000
14	Rate from line 6 (same 7-year rate as above)	0.1429
15	Line 13 times line 14 (computed)	$2,143.50

The deduction is $2,143.50 (computed). Real filings round to whole dollars on the return; the form’s instructions control that, not this sheet.

Edition

This page reads Publication 946 (2025), the file irs.gov served on 2026-11-05. The MACRS Worksheet sits on pages 37 and 38 of that edition. The record-keeping grid in the Form 4562 instructions is a different worksheet, on the Depreciation Worksheet page. Check the year printed on your own copy before following a line reference or table rate.

Common mistakes

Using this worksheet for a car. The publication sends passenger automobiles to a different worksheet in chapter 5.
Putting land in line 7 for real estate. The footnote says not to include it.
Reducing basis by earlier years’ MACRS depreciation when using the tables. The tables apply to unadjusted basis each year.
Forgetting the business use percentage on line 8 when the property is also used personally.
Skipping line 12 instead of entering -0- when no special allowance applies.

Find the right next step for your situation

About how much do you have invested? Pick the range that fits; your next step appears immediately below.

About how much do you have invested? Under $100,000 $100,000 to under $250,000 $250,000 to under $1 million $1 million or more

Sources

Publication 946 (2025), How To Depreciate Property: https://www.irs.gov/pub/irs-pdf/p946.pdf
IRS, About Publication 946, How To Depreciate Property: https://www.irs.gov/forms-pubs/about-publication-946

Read from the IRS documents linked above on November 5, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.

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