MACRS deductions are reduced for certain property by requiring that an alternative MACRS method, based on the Asset Depreciation Range System class lives, be used for:
1. Tangible property used predominately outside the United States
2. Tax exempt property
3. Tax exempt bond financed property
4. Property imported from a foreign country for which an Executive Order is in effect because the country maintains trade restrictions
5. Property for which an alternative MACRS election has been made
Mixed property which is used for both business and personal purposes that is used 50 percent or more for personal use is also required to be depreciated under the alternative MACRS rules.
Under the alternative MACRS rules, the applicable depreciation method for all property is the straight line method. The deduction is computed by applying the straight line method, the applicable convention, and the applicable prescribed longer recovery period for the respective class of property.