Which fo the followng statements with respect to the depreciation of property un

Question

Which fo the followng statements with respect to the depreciation of property under MACRS is incorrect?

A. Under the half-year convention, one-half year of depreciation is allowed in the year the property is placed in service.

B. If the taxpayer elects to use the straight-line method of depreciation for property in the 5-year class, all other 5-year class property acquired during the year must also bbe depreciated using the straight-line method.

C. In some cases, when a taxpayer places a significant amount of propery in service during the last quarter of the year, real property must be depreciated during a mid-quartter convention.

D. The cost of property to which the MACRS rate is applied is not reduced for estimated salvage value.

Explanation / Answer

C. In some cases, when a taxpayer places a significant amount of propery in service during the last quarter of the year, real property must be depreciated during a mid-quartter convention.

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