If more than 40% of the depreciable basis of personal property is placed in service during the last three months of the tax year, the taxpayer must use the mid-quarter convention.

Question

Quizplus · Accepted Answer

This is true according to the IRS regulations on depreciating assets. The mid-quarter convention is used when an asset is placed in service in the last quarter of the year, which includes the last three months. This is meant to prevent taxpayers from taking advantage of a full year's worth of depreciation for an asset that was only used for a short period of time.

If More Than 40% of the Depreciable Basis of Personal