Question

When should you use the Mid Quarter Convention-First Quarter Over Half-Year Convention?  

Answer 1

Mid-quarter convention assumes that all property is placed in service in the last quarter’s midpoint, if, more than forty percent of the all personal property other than real estate is placed in service during the last quarter of the tax year mid-quarter convention applies over half-year convention.

When mid-quarter convention applies, for assets placed in service during the first quarter, mid quarter-first quarter depreciation rates apply to those assets..