If a machine (seven-year property)being depreciated using the half-year convention is disposed of during the seventh year, a taxpayer must multiply the appropriate depreciationpercentage from the MACRS table by 50 percent to calculate the depreciation expense properly.

Question

Quizplus · Accepted Answer

In the seventh year of depreciation for property under the half-year convention, the taxpayer must apply a 50 percent adjustment to the standard MACRS depreciation rate for that year, as the convention assumes the property is in service for only half of the final year.

If a Machine (Seven-Year Property)being Depreciated Using the Half-Year Convention