Stanley Inc., a calendar year taxpayer, purchased a building and placed it in service on June 12. The MACRS depreciation calculation assumes that the building was placed in service on May 15 (midquarter).

Question

Quizplus · Accepted Answer

Since the building was placed in service after May 15, it would not be considered midquarter and would be eligible for the half-year convention. Therefore, the depreciation calculation would be based on the assumption that the building was placed in service on July 1 (beginning of the second half of the year), not May 15.