![Enrolled Agent Exam [Part 2] 40, MACRS — Modified Accelerated Cost Recovery System](https://artwork.captivate.fm/66dc02ed-369e-49e5-89a7-db7df9f63a25/20260115-1339-Image-Generation-simple-compose-01kf1sj7hsfcqbept.png)
Enrolled Agent Exam [Part 2] 40, MACRS — Modified Accelerated Cost Recovery System
From Finance Exam Prep by Ran Chen, EA, CFP®
June 6, 2026 · 4 min
About this episode
In this episode, Ran Chen discusses the Modified Accelerated Cost Recovery System (MACRS) and its application in the Enrolled Agent Exam.
This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - How to identify the correct MACRS class life for commonly tested assets like computers (5-year) and office furniture (7-year). - The critical difference between the 27.5-year life for residential rental property and the 39-year life for nonresidential real property. - The function of the default half-year convention and how it applies to personal property. - How to spot the common exam trap of the mid-quarter convention by applying the 40% test for assets placed in service in the fourth quarter. - The specific application of the mid-month convention exclusively for real property. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep
People in this episode
Host: Ran Chen
Topics covered
- MACRS
- Enrolled Agent Exam
- tax depreciation
- asset classification
- exam preparation
Keywords
- MACRS
- Enrolled Agent Exam
- depreciation
- asset classes
- taxation
- exam traps
- real property
Mentioned in this episode
Organizations: Open Exam Prep
Products: MACRS
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- Enrolled Agent Exam [Part 2] 43, Section 179 Expensing — Limits · June 9, 2026 · 3 min
- Enrolled Agent Exam [Part 2] 42, Bonus Depreciation — Phase-Down Schedule · June 8, 2026 · 3 min
- Enrolled Agent Exam [Part 2] 41, MACRS Conventions — Half-Year, Mid-Quarter, Mid-Month · June 7, 2026 · 4 min
- Enrolled Agent Exam [Part 2] 39, Depreciation Basics — Useful Life and Method · June 5, 2026 · 4 min
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