Asked by damian sanchez on Jul 22, 2024
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.
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.
Learning Objectives
- Acquire knowledge on the basic principles and standards of tax depreciation techniques within the Modified Accelerated Cost Recovery System.
Related questions
For Tax Purposes, ________ Establishes the Guidelines and the Percentages ...
The Modified Accelerated Cost Recovery System (MACRS)is Often Used by ...
The MACRS Differs from Straight-Line Depreciation Computed for Financial Reporting ...
When Determining the Present Value of the Tax Shield for ...
The Bookkeeper for the Martel Company Is Computing Depreciation for ...