REG Practice Questions: Calculating Tax Depreciation for Tangible Business Property Using MACRS

[@sherellharmon6130]

Very helpful for my REG studying!

[@SuperfastCPA]

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[@shakeisha.lawrence7156]

Question 1, How many Properties Placed into Service Last-Quarter? i Know the Last Quarter Start (October, November & December) Equipment $80,000.00 Printers $40,000.00 Venicles $100,000.00 Last-Quarter Desks & Chairs $20,000.00 Last-Quarter $240,000.00 Total Property Placed Into Services Venicles $100,000.00 Desks & Chairs $20,000.00 $120,000.00 Total 5 Year Class Property Placed into Service * Last-Quarter Purchases $120,000.00 0.5 Total Purchases $240,000.00 Please help me understanding the Concept for first Question. Thanks!

[@SuperfastCPA]

Thanks for asking Shakeisha! I believe it explains this in the explanation in the video, but the idea is that you always use the half year convention for property (excluding Real Property like buildings) UNLESS more than 40% of the property purchased in the year was placed into service in the final quarter of the year. So, in this question, since 50% (which is more than 40%) of the property was placed into service in the last quarter, you have to use the mid quarter convention instead of the half year convention for ALL property placed into service that year (again, besides Real Property). Real Property always uses the mid-month convention, it doesn't use the half year or mid quarter convention. I hope this helps a little more!