I don't think understand how the mid-quarter convention works.
It applies to machinery & equipment. If > 40% of it placed in service in the last quarter of the year....but how do you calculate it?
Is this right?
Machinery & Equipment falling in the 7 year 200% class....
Office furniture : $1,000 (placed in service in Sept 2011)
Office equip : $2,000 (placed in service in Nov 2011)
66% placed in service in the last quarter of the year so the mid-quarter convention applies.
Is the depreciation $107 for the year? Half of the last quarter x 200%?
Maybe it's a silly question, but I'm not taking any chances this time =(