• The Alternative Depreciation System (ADS) is a method that allows taxpayers to calculate the amount of depreciation the IRS allows them to take on certain business assets.

  • Depreciation is an accounting method that allows businesses to allocate the cost of an asset over its expected useful life.
  • An alternative depreciation system allows taxpayers to increase the number of years over which they can depreciate an asset.
  • The General Depreciation System (GDS) allows taxpayers to accelerate the depreciation rate of an asset by charging a larger amount of depreciation in the early years of the asset’s useful life.