Which MACRS convention should I use?
Half-Year Convention
This convention applies to all property, unless the mid-quarter convention applies. It doesn't apply to residential rental property, nonresidential real property, and railroad gradings and tunnel bores. It treats all property placed in service (or disposed of) during any tax year as placed in service (or disposed of) on the midpoint of that tax year.
Mid-Quarter Convention
If the total depreciable bases (before any special depreciation allowance) of MACRS property placed in service during the last 3 months of 2025 exceed 40% of the total depreciable bases of MACRS property placed in service during the entire tax year, the mid-quarter convention generally applies.
The mid-quarter convention treats all property placed in service (or disposed of) during any quarter as placed in service (or disposed of) on the midpoint of that quarter. So you'll probably want to choose "Half-Year Convention".
Mid-Month Convention
Only applies to residential rental property, nonresidential real property, and railroad gradings and tunnel bores. This convention treats all property placed in service (or disposed of) on the midpoint of that month. This method is usually only used for foreign real estate. To enter U.S real estate go back to the Depreciable Asset Category screen and choose real estate.
This convention applies to all property, unless the mid-quarter convention applies. It doesn't apply to residential rental property, nonresidential real property, and railroad gradings and tunnel bores. It treats all property placed in service (or disposed of) during any tax year as placed in service (or disposed of) on the midpoint of that tax year.
Mid-Quarter Convention
If the total depreciable bases (before any special depreciation allowance) of MACRS property placed in service during the last 3 months of 2025 exceed 40% of the total depreciable bases of MACRS property placed in service during the entire tax year, the mid-quarter convention generally applies.
The mid-quarter convention treats all property placed in service (or disposed of) during any quarter as placed in service (or disposed of) on the midpoint of that quarter. So you'll probably want to choose "Half-Year Convention".
Mid-Month Convention
Only applies to residential rental property, nonresidential real property, and railroad gradings and tunnel bores. This convention treats all property placed in service (or disposed of) on the midpoint of that month. This method is usually only used for foreign real estate. To enter U.S real estate go back to the Depreciable Asset Category screen and choose real estate.
