no, the first year already accounts for the mid-month convention. thats why it has the month placed in service date as the header. you would simply find your month placed in service and apply that rate. However, anything sold between years 2 - 39 would require you to calculate the mid-month for the proportionate time that you owned the property. Selling at any point in May has you selling as of the middle of May which means January through April you owned the asset (4 months) plus half of May (.5 months) totalling 4.5 months owned in the year of disposal. Since the table shows the yearly depreciation you have to apply the proportionate share of depreciation. 1,000,000 x [(.02564/12) x 4.5] =9,615
@@AdamPeeGuerrayou are correct on the depreciation for 2025. But my question is depreciation for 2022 - should it be 3,120 instead of 31,200 per the slice shown. 0.321%=0.00321 x 1m = 3120
at 9:00 slide, should the depreciation for 2022 be 3,210 (0.00321 x 1,000,000)?
no, the first year already accounts for the mid-month convention. thats why it has the month placed in service date as the header. you would simply find your month placed in service and apply that rate.
However, anything sold between years 2 - 39 would require you to calculate the mid-month for the proportionate time that you owned the property. Selling at any point in May has you selling as of the middle of May which means January through April you owned the asset (4 months) plus half of May (.5 months) totalling 4.5 months owned in the year of disposal. Since the table shows the yearly depreciation you have to apply the proportionate share of depreciation. 1,000,000 x [(.02564/12) x 4.5] =9,615
@@AdamPeeGuerrayou are correct on the depreciation for 2025. But my question is depreciation for 2022 - should it be 3,120 instead of 31,200 per the slice shown. 0.321%=0.00321 x 1m = 3120
@@TJSF88 hahaha yes he didnt move the decimal over for calculating as a percent correctly. nice catch.