Mid-Month Convention

Mid-Month Convention

A method in which the owner of some asset is allowed one half-month of depreciation in the month that the asset is purchased or sold (or otherwise disposed of). That is, the mid-month convention treats assets purchased or sold any time during a month as having been purchased or sold on the day half-way through that month.
References in periodicals archive ?
The cost of residential rental and nonresidential real property is recovered using the straight-line method and the mid-month convention over 27.
The annual depreciation rate is different in the first and last year the property is placed in service because of the application of the mid-month convention.
Since the residence in the following example was first placed in service during April, the mid-month convention requires that 8.
The mid-month convention here was billed as the first regional gathering of Key chapters.
The Company will restate its financial statements for schools previously recognizing revenue on a monthly basis to adopt a mid-month convention for revenue recognition whereby only a half month of revenue will be recognized in both the initial month and the final month of attendance for students in diploma programs.
The property wax subject to depreciation using the straight-line method, with a 39-year recovery period and the mid-month convention.
Exhibit 1: 1986 property Assume 19-year ACRS residential real property was placed in service in December 1986; mid-month convention applies.
Disregard the mid-month convention for this example.
if the leasehold improvement is classified as commercial real estate, it is required to be depreciated straight-line over 39 years, using the mid-month convention.
The buyer and seller of a low-income building may agree to use either the mid-month convention or the exact number of days in the month of disposition to determine the division of the allowable credit.
5 years;(6) and the only convention available is the mid-month convention, which assumes that all property is placed in service at the midpoint of the month, thereby allowing one-half of a month's depreciation in the first month.
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