[Anonymous]

So for Reg 4 Becker states that if more than 40% of depreciable personal property is placed in service in the last quarter of the year you use the mid quarter convention. And for the sims you would use the mid-quarter chart and use the %’s for the 4th quarter. So my question is what is the point of having mid quarter depreciation rates for property placed in the first, second or third quarters if all you care about is the fourth quarter since the only reason you use the mid-quarter is for property placed in the fourth quarter?

[clrk217john]

The Mid-Quarter convention applies when 40% of depreciable personal property is placed in service in the last quarter of the year. When this is the case, then all depreciable personal property–acquired at any point in the year–shall use the mid quarter convention. Thus, depending on the time of year each individual item is placed into service, there are 4 tables for the respective quarter.

Again, when the mid quarter convention applies because of the 40% test, then it affects all property placed into service that year. There is no half year convention that can be applied for items purchased in Q1, 2, or 3; instead, this property is depreciated via the Q1,2,&3 tables using the Mid-Quarter convention. Does this make sense?

Since you're using Becker, See Reg. Section 4, Simulation 1, Problem 5. Cells D4 and D5 reflect property placed into service in Q4 and Q1, respectively, where each uses the mid-quarter convention, because the 40% test applies, but each requires a different table to reflect when it was placed into service.

FAR - 95, 2/17/2016
AUD - 98, 4/2/2016
REG - 92, 6/10/2016
BEC - Waiting for Score, 7/9/2016

[leglock]

If 40% is purchased in the last quarter, then the mid quarter convention will apply to ALL items purchased that year. All items weren't necessarily purchased in the 4th quarter. So you would apply the mid quarter rate which corresponds to the quarter the item was purchased in. Actually, instead of purchased it's when it is placed in service.

[leglock]

double post

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