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half-year convention |
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| For example, for five-year MACRS property (assuming the half-year convention applies) acquired for $10,000 and placed in service in January 2001, the calculation for 2003 depreciation involved identifying the applicable rate from the table 6 for year 3 (0. Under the existing law, using the half-year convention, the asset's 2002 depreciation is $20,000. A half-year convention is used by treating all package designs incurred during the year as having been incurred on the midpoint of the tax year. |
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