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half-year convention

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half-year convention
The assumption for tax purposes that a newly acquired asset is placed in service halfway through the year regardless of when the asset is actually acquired and placed in service. The half-year convention affects annual depreciation, taxation, and earnings calculations.
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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.
Calculating depreciation on a like-kind exchange or an involuntary ... by Mason, J. David / The Tax Adviser
Under the existing law, using the half-year convention, the asset's 2002 depreciation is $20,000.
Ready, set, depreciate: Highlights from the 2002 tax act by Josephs, Stuart R. / California CPA
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.
Accounting for the costs of package designs by Schwarz, Melbert E. / Tax Executive
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