Final answer:
The MACRS recovery period of a piece of personal property is determined based on its depreciation method and class life. It can range from 3 to 20 years depending on the asset's assigned recovery period.
Step-by-step explanation:
The MACRS recovery period of a piece of personal property can be determined based on its depreciation method and class life. The Modified Accelerated Cost Recovery System (MACRS) is a tax depreciation system used in the United States. Under MACRS, personal property assets are assigned to different recovery periods ranging from 3 to 20 years, depending on their class life.
For example, if the personal property is classified as 5-year property, its MACRS recovery period would be 5 years. This means that the asset can be depreciated over 5 years for tax purposes, with a specific depreciation percentage applied each year based on the assigned recovery period.
It's important to consult the official MACRS tables provided by the Internal Revenue Service (IRS) to determine the specific recovery period for different types of personal property assets.