The Modified Accelerated Cost Recovery System (MACRS) has special rules that generally apply to qualified rent-to-own property.

Qualified rent-to-own property is that held by a rent-to-own dealer under a rent-to-own contract.  A “rent to-own dealer” is a person in the business of entering arrangements like “Lease with Ownership Option,” and a substantial portion of the contracts end with the property being returned to the dealer before receipt of all payments needed to transfer ownership of the property.  Generally, rent-to-own property placed in service after Aug. 5, 1997, is assigned to the 3-year property class.