The mid-year convention under MACRS provides that
A)Depreciation is allowable in the year of acquisition of qualified property only if the property is placed in service in the first one-half of that year.
B)One half of the year-of-acquisition depreciation is allowed regardless of when the property is placed in service during the year. One-half year's depreciation is allowable for the year of disposition.
C)Depreciation is allowable in the year of disposition only if the property is disposed of in the last one-half of that year.
D)The cost recovery deduction is based on the number of months the property was in service in the year of acquisition. Therefore, one-half month's cost recovery is allowable for the month in which the property is placed in service and for the month of disposition.

Question

Quizplus · Accepted Answer

The mid-year convention under MACRS allows for one half of the year-of-acquisition depreciation to be allowed regardless of when the property is placed in service during the year. Additionally, one half year's depreciation is allowable for the year of disposition. This means that if a property is acquired and placed in service at any point during the year, the owner can still claim half of the full year's depreciation for that year. Similarly, if the property is disposed of during the year, the owner can still claim half of the full year's depreciation for that year.

The Mid-Year Convention Under MACRS Provides That