[Anonymous]

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?

[Spartans92]

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 - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[leglock]

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.

[Spartans92]

^^ Good point. Totally forgot to mention that!

BEC - 76
REG- 67, 85
AUD-63, 74, 80!!
FAR-65, 62, 57, 79

3 down 1 more to go. BEC is on the Line 🙁

BEC- PASS

[Author]

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