Asked by damian sanchez on Jul 22, 2024

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Verified

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.

Mid-Month Convention

A rule for depreciation of business assets that assumes assets are acquired and disposed of at the midpoint of the month.

Personal Property

Assets belonging to an individual that are movable, excluding real estate or land.

  • Acquire knowledge on the basic principles and standards of tax depreciation techniques within the Modified Accelerated Cost Recovery System.
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Verified Answer

AA
Atoum AbdullahJul 27, 2024
Final Answer :
False
Explanation :
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.