Taxpayers must use the mid-month convention when more than 40% of the personal property is placed in service during the last three months of the tax year.

Question

Quizplus · Accepted Answer

The mid-month convention applies to real property, not personal property. For personal property, the half-year or mid-quarter convention is used depending on when the property is placed in service during the tax year.

Taxpayers Must Use the Mid-Month Convention When More Than 40