Mid year convention

  • Creator
    Topic
  • October 11, 2016 at 3:04 am #1253161
    Anonymous
    Inactive

    If a business is started in January 1, year 1 and a machinery is placed in service on the same day (January 1, year 1), Does mid year convention apply to the depreciation of such machinery?

Viewing 3 replies - 1 through 3 (of 3 total)
  • Author
    Replies
  • October 11, 2016 at 9:00 am #1253190
    Spartans92
    Participant

    Yes, generally you use half year convention when you put machinery and equip in place. Unless it wias purchased in the last quarter then you would use mid quarter. Mid month would be used for real property I believe.

    BEC- PASS

    October 11, 2016 at 2:18 pm #1262488
    leglock
    Participant

    Just one point of clarification. Mid quarter is used only when you purchase over 40% of that year's purchases (excluding property) in the last quarter. Then all purchases will use mid quarter.

    October 11, 2016 at 2:33 pm #1262515
    Spartans92
    Participant

    ^^ Good point. Totally forgot to mention that!

    BEC- PASS

  • Author
    Replies
Viewing 3 replies - 1 through 3 (of 3 total)
  • The topic ‘Mid year convention’ is closed to new replies.