asset depreciation range system (ADR) definition

asset depreciation range system (ADR)

A system utilized by the Internal Revenue Service to determine the economic life of specific classes of depreciable assets. This system was replaced briefly with the accelerated cost recovery system in 1981, but was reintroduced after the tax reform of 1986. Based on this system, assets are assigned an upper limit and lower limit in accordance with expected useful lives of the depreciable asset. Business owners are allowed to use the ADR system or a straight line depreciation schedule.

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