The Mid-Month Convention Under MACRS Provides That

The mid-month convention under MACRS provides that

A) Depreciation is allowable for the month of disposition only if the property is disposed of in the last one-half of that month.
B) Depreciation is allowable for the month of acquisition of qualified property only if the property is placed in service in the first one-half of that month.
C) One half of the year-of-acquisition depreciation is allowed regardless of when the property is placed in service during the year. One-half year's depreciation is allowable for the year of disposition.
D) The cost recovery deduction is based on the number of months the property was in service in the year of acquisition. Therefore, one-half month's cost recovery is allowable for the month in which the property is placed in service and for the month of disposition.