ABLE account.
An account for a person who became disabled before age 26. Nondeductible annual contributions can be made up to a specified limit and distributions are tax free if used to pay qualified disability expenses; see 34.12.
Accelerated cost recovery
A statutory method of depreciation allowing accelerated rates for most types of property used in business and income-producing activities during the years 1981 through 1986. It has been superseded by the modified accelerated cost recovery system (MACRS) for assets placed in service after 1986; see 42.4 and 42.12.
Accelerated depreciation.
Depreciation methods that allow faster write-offs than straight-line rates in the earlier periods of the useful life of an asset. For example, in the first few years of recovery, MACRS allows a 200% double declining balance write-off, twice the straight-line rate; see 42.542.8.
Accountable reimbursement plan.
An employer reimbursement or allowance arrangement that requires you to adequately substantiate business expenses to your employer, and to return any excess reimbursement; see 20.32.
Accrual method of accounting.
A business method of accounting requiring income to be reported when earned and expenses to be deducted when incurred. However, deductions generally may not be claimed until economic performance has occurred; see 40.3.
Acquisition debt.
Debt used to buy, build, or construct a principal residence or second home and that generally qualifies for a full interest expense ...

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