Depreciation and the MACRS Method Everything else equal, the greater the depreciation charges, the lower the taxes paid by the firm Depreciation is a noncash expense Assets are depreciated MACrs)on one of eight different property classes Generally, the half-year convention is used for macrs 12-1112-11 Depreciation and the MACRS Method Everything else equal, the greater the depreciation charges, the lower the taxes paid by the firm. Depreciation is a noncash expense. Assets are depreciated (MACRS) on one of eight different property classes. Generally, the half-year convention is used for MACRS