Mark for Question 34 of 75. I rental property Qhat has been depreciated in the y

Question

Mark for Question 34 of 75. I rental property Qhat has been depreciated in the year of disposition, how is the depreciation deductior using the mid-month c calculated for real The depreciation in the year of disposition will be the same as the depreciation in a regular year 0 0 The deductible amount wil be, determined by the, month in which the asset is disposed O No deduction is allowed in the year of disposition. ly the amount of depreciation actualy claimed in prior years is allowable Mark for follow up

Explanation / Answer

Ans is b The deductible amount will be determined by the month in which the asset is disposed.

Explanation: As per mid-month convention, if property is disposed anytime in the month, it will be counted as half used in that month take an example, an assets is disposed in 2017, in may 2, then depreciation for the complete 4 month and half month for may will be calculated in 2017.

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