Under the alternative depreciation system (ADS),the half-year and mid-quarter conventions are applicable for personalty.

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The half-year and mid-quarter conventions are applicable for personalty under the alternative depreciation system (ADS). These conventions determine the amount of depreciation that can be taken in the first and last year of an asset's useful life. The half-year convention assumes that an asset is placed in service halfway through the tax year, while the mid-quarter convention applies if more than 40% of an asset's cost is placed in service in the last quarter of the tax year.

Under the Alternative Depreciation System (ADS),the Half-Year and Mid-Quarter Conventions