Date Placed in Service

Along with the type of property, the date on which you place an asset in service can determine the depreciation method required. As the Internal Revenue Code changes, so do the depreciation methods that are valid for assets newly placed in service. The application lets you use only those depreciation methods that are valid for an asset given the property type and the date placed in service.

The date you place an asset in service affects depreciation in two other ways:

• The averaging convention that you use

• Whether you placed the asset in service during a short tax year.