For tax purposes, using MACRS recovery periods, assets in the first four property classes are depreciated by the double-declining balance (200 percent) method using the half-year convention and switching to straight line when advantageous.

Question

Quizplus · Accepted Answer

This statement is true. MACRS recovery periods for the first four property classes (which includes property used in trade or business, or held for the production of income) are depreciated using the double-declining balance method with a half-year convention, and switching to straight line when it becomes more advantageous.

For Tax Purposes, Using MACRS Recovery Periods, Assets in the First