The mid-month convention applies to real property in the year of acquisition and disposition.

Question

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The mid-month convention is applied when calculating the depreciation for real property in the year of acquisition and disposition. This convention assumes that property is placed in service in the middle of the month regardless of the actual date of acquisition, and is disposed of in the middle of the month regardless of the actual date of disposition. This ensures that the depreciation deduction for the year is based on a half-month of depreciation in the year of acquisition and a half-month of depreciation in the year of disposition.

The Mid-Month Convention Applies to Real Property in the Year