What Is the Basis for Depreciation? Words you may need to know (see Glossary): Basis The basis for depreciation of MACRS property is the property's cost or other basis multiplied by the percentage of business/investment use. (For a discussion of business/investment use, see Partial business or investment use under Property Used in Your Business or Income-Producing Activity in chapter 1.) Reduce that amount by the following items. Any deduction for section 179 property. Any deduction for removal of barriers to the disabled and the elderly. Any investment credit, disabled access credit, or enhanced oil recovery credit. For information about how to determine the cost or other basis of property, see What Is the Basis of Your Depreciable Property? in chapter 1.