On August 11,2013,Nancy acquired and placed into service residential rental property,which cost $430,000; the cost of the land has been excluded.Nancy annually elects the maximum allowed Sec.179 deduction.The total depreciation for the year is (rounded)

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Residential rental property is depreciated using the Modified Accelerated Cost Recovery System (MACRS) over 27.5 years. The mid-month convention applies, so for the first year, depreciation is calculated for 4.5 months. The annual depreciation is $430,000 / 27.5 = $15,636.36. For 4.5 months, it is $15,636.36 * (4.5/12) = $5,865.

On August 11,2013,Nancy Acquired and Placed into Service Residential Rental