If the business usage of listed property is less than or equal to 50% of its total usage,depreciation is calculated using the
A)regular MACRS tables.
B)alternative depreciation system.
C)regular MACRS tables and a mid-month convention.
D)It may not be depreciated.

Question

Quizplus · Accepted Answer

If the business usage of listed property is less than or equal to 50% of its total usage, it must be depreciated using the alternative depreciation system. This system uses longer recovery periods and straight-line depreciation instead of MACRS tables. Therefore, option B is the best choice.

If the Business Usage of Listed Property Is Less Than