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Unformatted text preview: apartment buildings 39-year All nonresidential real property, including commercial and industrial buildings Half-Year Convention • Under MACRS, the assumption is generally made that property is placed in service in the middle of the first year. • The effect of the half-year convention is to extend the recovery period out one more year. • So 3-year class life property is depreciated over four calendar year. 2 Recovery Allowance Percentage Source : Brigham & houton • Property in the 27.5- and 39-year categories (real estate) must be depreciated by straight line method • But 3-, 5-, 7-, and 10-year property can be depreciated either by the accelerated method using the MACRS rates or by an alternate straight line method....
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- Spring '10
- Depreciation, 3-year, certain special manufacturing, BBA Business Finance